Mad Money

Clean up your act, Musk—Tesla's a total disaster!

Tesla: Great car, bad company, says Cramer
Tesla: Great car, bad company, says Cramer

That's it, Jim Cramer has had enough! Is Elon Musk seriously proud of the disaster conference call that he held for Tesla this week?

Elon, consider this as your one and only warning from Cramer before you land on the "Mad Money" wall of shame.

Looking back, Cramer has always referred to Tesla as a "cult stock." Those are stocks that remain difficult to value, because they do not trade on earnings or traditional measurements used to value stocks. Instead, they trade on how snazzy the last press release was.

That meant that to believe in Tesla, investors couldn't hold it accountable for its bottom line. Investors would have to believe that the car would do better than the competition, and the CEO would lead the charge for the company and allow it to flourish.

Elon Musk
Getty Images

Cramer's dreams were crushed in practically every aspect after listening to Musk's conference call Wednesday evening. The company missed the mark on sales, earnings and cash flow and guidance. It is swimming in debt, with a negative $455 million cash flow.

"It is burning money like crazy. It is spending money like crazy. No way the balance sheet can support the investment needed," said the "Mad Money" host.

But the real kicker was the responses provided by Musk to valid questions about earnings.

When asked why sales were weak, and how manufacturing problems held back the company, Musk responded that it was "physically impossible due to a combination of customers being on vacation, severe winter weather and shipping problems." Customers on vacation?!

Musk then referred to his employees as being "brain-dead" when clarifying that the perceived issue in China was that his sales team gave the incorrect perception that it was difficult to charge cars in China, though it was not.

He then responded to a question of profitability for the future by stating "I'd like to emphasize that doesn't mean 'B.S.' profitable, it means really profitable."

Cramer was shocked that a CEO would curse on a conference call and compared the lowbrow action to Enron's CEO desperately cursing at an analyst shortly before it fell apart.

Musk then went on to compare Tesla to Apple, and confirmed that it will be spending staggering amounts of money on capital expenditures. Where the heck is this money going to come from?

Read more from Mad Money with Jim Cramer
Cramer Remix: Buy this as oil swings
Cramer: Apple is worth a lot more than you think
Cramer: Thanks Europe—good news for your portfolio

While Cramer loves the Tesla car, he does not like the company. And though Cramer does consider Musk a genius, he is now officially issuing him a formal warning.

"Make no mistake about it, this was a fiasco miss of immense proportions coupled with the arrogance of a Steve Jobs without the wonderment to back it up," Cramer said.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine

Questions, comments, suggestions for the "Mad Money" website?