Jim Cramer shares his thoughts on UBS’ downgrade of Tesla (TSLA) from NEUTRAL to SELL. ‘Here’s the problem with Tesla: it’s a cult stock,’ Cramer said. ‘The younger people want you to own Tesla and they don’t care.’ Cramer explains that the decision by UBS is due to a downgrade in the expected number of solar battery units sold in 2025. But Cramer doesn’t seem to think that owning Tesla is a bad idea for all investors even if he can’t back the stock. ‘If you like the car, go buy the stock,’ Cramer said. ‘I don’t even have a problem with that.’ Cramer related this to people buying Netflix (NFLX) based on the fact that they liked the service. People who bought Netflix for this reason could have done well but Cramer takes a more focused and rational approach in his opinion of Netflix. ‘I always liked Netflix because I thought the total adjustable market size was so big that you had to be on Netflix,’ Cramer said. But when it comes to Tesla, Cramer has his reservations. Cramer says that the fact that companies like Audi and BMW will be releasing ‘really good’ cars in 2017 and the introduction of a new hydrogen car from Japan are reasons for him to worry about Tesla’s prospects.
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