The electric car company had been a red-hot growth stock but lost more than a quarter of its value in the session, ending down roughly 14.5 percent, at $151.16 a share. The decline was especially noteworthy considering that Tesla had reported better-than-expected earnings Tuesday, Cramer said on “Mad Money.”
So what happened?
Tesla had also delivered softer-than-anticipated revenue, and deliveries of its Model S disappointed some market observers. To Cramer, fewer sales was a breakdown in execution, especially as the automaker has continued to enjoy high demand. As it turned out, the lack of execution might not have been Tesla’s fault, but its stock certainly paid for it.
Watch the video below for more details on the stock: