https://www.teslarati.com/tesla-tsla-jim-cramer-against-oil-stocks/
[links and video in online article]
Tesla convinces Jim Cramer to move on from oil: "I'm done with fossil
fuels."
By Joey Klender
Posted on January 31, 2020
Recent Tesla convert and host of CNBC’s Mad Money Jim Cramer has
officially announced that his backing of fossil fuel stocks is over.
Cramer stated that times have changed, and the stocks are no longer
appealing to younger investors because of recent uptrends with companies
that operate with sustainability in mind, such as Tesla.
After a weak opening in the market on Friday where both Exxon Mobil and
Chevron were down 1.48% and 2.30% respectively, Cramer expressed his
discontent with oil stocks. The two companies were considered “a drag on
the DOW” by lead anchor Rebecca Quick.
“I’m done with fossil fuels, we’re done. We’re starting to see
divestment all over the world. We’re starting to see companies and big
pension funds say, ‘We’re not going to own them anymore,'” Cramer said.
Cramer states the appeal in these formerly high-value stocks has simply
dropped off due to a change in times. He also credits Tesla’s
(NASDAQ:TSLA) increasing value for convincing him that fossil fuels are
not a smart investment.
“This has to do with new kinds of money managers, who frankly just want
to appease younger people who believe you can’t ever make a fossil fuel
company sustainable…in the end, they make fossil fuels. We’re in the
death-knell phase,” Cramer added.
Cramer is a recent Tesla supporter and has stated in the past that he
was convinced to buy one of the company’s vehicles after his daughter
drove a Model 3 from Oregon to San Francisco. After just 100 miles, his
daughter called him and told him to buy a Tesla immediately.
The issue of sustainability seems to be the reason Cramer believes it is
time to give up hope with fossil fuels. He compared fossil fuel stocks
to tobacco, stating that eventually people would see the downside in
their value and say “We’re not going to own them.”
“I think that the issue is sustainability. Look, this is the other side
of Tesla. These stocks don’t want to be owned by younger people,” he
remarked.
TSLA stockholders have enjoyed a sharp increase in stock value over the
past few months. The stock has climbed nearly 33% since the beginning of
2020, as its value on the first day of trading this year was $430.
Currently, TSLA is trading at around $640 per share thanks to a
successful Q4 2019 earnings call on January 29 that included the
announcement of early deliveries of the Model Y.
The Silicon Valley-based automaker has enjoyed the change in tune from
young investors, as the company’s product has evidently become more
appealing than its oil and fossil fuel counterparts.
You can watch Jim Cramer’s denouncement of fossil fuel stocks on CNBC below.
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