Jim Cramer Slams Cathie Wood's 'Bold' Claims Of 80% Vehicles Being EV In A Few Years: 'Painful'

Author: Rounak Jain | April 03, 2024 08:36am

Jim Cramer took a potshot at Ark Invest's Cathie Wood's "bold" claims that 80% of the vehicles on the road will be electric in a "few years."

What Happened: Cramer slammed Wood's belief after Tesla Inc.'s (NASDAQ:TSLA) big sales miss in the March 2024 quarter.

"Cathie Wood making bold claims about 80% of vehicles being EV in just a few years .. I [think] this PAINFUL…"

Cramer's comments come after Elon Musk-led EV giant reported a major sales miss in the March 2023 quarter, with its production and deliveries both down on a year-on-year as well as quarter-on-quarter basis.

While analysts feared a fall in Tesla sales during the quarter, Wood doubled down on her bet on the EV maker, plowing in another $39 million in the company's stock.

Cramer, though, dunked on Wood, saying that this is going to be "painful."

Cathie Wood making bold claims about 80% of vehicles being EV in just a few years .. I thing this PAINFUL…

— Jim Cramer (@jimcramer) April 3, 2024

The "Mad Money" host referred to Wood's comments earlier in February where she said electric vehicles will continue to grow over the next few years.

In Ark Invest's annual "Big Ideas" report, Wood said she believes falling battery costs could drive an "exponential" growth in EV sales.

See Also: Tesla Catches Analysts Off Guard With ‘Kitchen Sink’ Q1: Why This Fund Manager Says It’s ‘Hard To Be Bullish’ On EV Giant’s Stock

By 2030, she believes EV sales would reach 74 million by 2030, up from 10 million in 2023.

"As battery costs continue to decline, EV prices should fall, potentially driving exponential growth in unit sales," the report said.

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Why It Matters: Wood has remained steadfast in her belief in Tesla – it is the second biggest holding of Wood's flagship Ark Innovation ETF (NYSE:ARKK), with an investment of $677.4 million. Tesla shares account for 8.93% of the fund's total holdings.

While Tesla blamed the decline in deliveries on factory shutdowns and the early phase of the production ramp-up of the Model 3, this is its first year-on-year decline since the COVID-19 hit June 2020 quarter.

Price Action: Tesla shares were down 1.06% in premarket trading on Wednesday after closing at $166.63 on Tuesday, according to Benzinga Pro.

Check out more of Benzinga's Consumer Tech coverage by following this link.

Read Next: Tesla Analysts Size Up Ugly Q1 Numbers: Disaster, Train Wreck, Horror Show, Nightmare — Will Storm Pass Or Are Darker Days Ahead?

Photos courtesy: Flickr and Ark Invest

Posted In: ARKK TSLA