CNBC host Jim Cramer has advised investors to buy shares in electric vehicle maker Tesla Motors as the stock extended losses to a third day on Tuesday.
What Happened: “Can we just buy Tesla? Tesla is down. They do renewable energy. They have solar energy and the car,” Cramer said on CNBC’s “Mad Money Lightning Round.”
Cramer has recommended that investors buy some shares in Tesla now and also buy later if the stock falls another 5%.
Why It Matters: Tesla’s shares fell for a third day on Tuesday amid worries about vehicle safety issues and disappointing economic data from China, the company’s second-largest market.
It was reported on Monday that the National Highway Traffic Safety Administration (NHTSA) has opened a formal investigation into the electric vehicle maker’s Autopilot system.
Tesla is also seeing high interest from retail investors and was the sixth-most discussed stock on the Reddit’s WallStreetBets forum as of Tuesday night. The forum, which has 10.7 million users, is best known for driving the rally in GameStop and other heavily-shorted stocks earlier this year.
The Elon Musk-led company had reported better-than-expected earnings results for the second quarter last month.
Price Action: Tesla shares closed almost 3% lower in Tuesday’s trading at $665.71.
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