Tesla, General Motors Or Ford Stock? Here's What Jim Cramer And The Halftime Report Panel Said

Zinger Key Points
  • A 3-for-1 Tesla stock split was approved at the company’s annual shareholder meeting in early August.
  • Tesla shares will begin trading on a split-adjusted basis on Thursday.

Tesla Inc TSLA is set for a three-for-one stock split Wednesday night after the close.

Jim Cramer and the "Fast Money Halftime Report" panel compared the Elon Musk-led company to General Motors Co GM and Ford Motor Co F Wednesday afternoon on the show. 

What To Know: Cramer sided with Tesla and Ford over GM. He didn't hesitate to say he likes Tesla over GM, but Ford remains one of his favorite stocks.

"I love Ford. Jim Farley is making that transition, and he's not getting any credit for it," Cramer said.

He also noted that he would buy Tesla over any of the publicly-listed EV startups. 

"I think it's terrific. I think that everyone on Mad Money who calls in and wants ... all this [EV] stuff that's losing money [should] just own Tesla," Cramer said.

Virtus Investment Partners' Joe Terranova is holding Tesla stock for the long term. He told CNBC that he expects the stock split to "work well" for Tesla. Terranova noted that he has owned the stock for quite a while and considers it a core holding in his portfolio.

Related Link: 3 Factors Tesla Investors Should Consider As EV Maker Splits Its Shares On Wednesday

Cerity Partners' Jim Lebenthal actually favors GM over Tesla. He cited the company's Cruise autonomous vehicle division, which is much more than just robotaxi testing in San Francisco, he said. 

"It's the technology that permeates all of their cars, and Tesla, frankly, has had a hard time getting full self-driving mode out there," Lebenthal said.

He also highlighted the valuation of GM, which is trading under six times forward earnings, according to Benzinga Pro.

Finally, Boston Private's Shannon Saccocia decided to pass on comparing the trio of automakers because they shouldn't be compared, she said.

"Tesla is a tech company, and Ford and GM need to make money on making these cars. I just think that it's an apples to oranges comparison," Saccocia said.

The profitability expectations for Tesla are completely different from expectations for Ford and GM, she said. 

"I think if you want to be in the EV space, and you are looking primarily just at EVs, I think Tesla is your choice. If you want to be buying a car manufacturer, then you make your choice between Ford and GM," Saccocia said.

Tesla shareholders approved the three-for-one stock split at the company’s annual shareholder meeting in early August. Tesla shares will begin trading on a split-adjusted basis on Thursday.

TSLA, GM, F Price Action: Tesla was up 0.22% at $891.29, GM was up $1.79% at $39.25 and Ford was up 1.31% at $15.52 at the close on Wednesday.

Photo: courtesy of Tesla.

Posted In: Elon MuskJim CramerJim FarleyJim LebenthalJoe TerranovaShannon SaccociaLong IdeasNewsStock SplitTrading Ideas

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