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Cramer on Tesla IPO: Get in, Get out

Monday, 28 Jun 2010 | 3:14 PM ET

Cramer during Monday’s Stop Trading! reiterated his previous call on Tesla Motors’ public offering, telling viewers to buy the IPO but not the stock itself for the long term.

“You want to get some on the deal and then get out,” Cramer said. “I think it’s going to be a bad company.”

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Tesla, which makes electric cars, isn’t yet profitable, Reuters reported, and the company has said a quarter in the black won’t come until it starts selling a high volume of its $50,000 Model S sedan. Also, according to Reuters, Tesla so far has sold only 1,000 of its $109,000 Roadsters.

If investors want to buy an autos IPO, they should consider General Motors’ upcoming deal.

“GM’s a real business,” Cramer said. “Tesla isn’t as far as I’m concerned.”

In smartphone space, President Obama may want to double the wireless spectrum available for commercial use, as The New York Times reported, but it won’t do much good with out cell-phone towers, Cramer said. Therefore he thinks the trades on this news are American Tower and Ciena , which converts terrestrial voice-based networks into cell-phone data-based networks.

And lastly, all things housing and housing related seem to have been abandoned by investors, but Cramer pointed to a Wells Fargo report that showed Williams Sonoma is having a strong quarter.

“Everything’s been thrown away,” Cramer said of the housing sector, but Williams Sonoma is doing “pretty good.”

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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