Investors should consider selling some Tesla shares and 'let the rest run,' Jim Cramer says

• "I would sell maybe as much as half here — if you bought it when I said — but then let the rest run," CNBC's Jim Cramer said of Tesla stock.
• "Selling half your Tesla [stake] here, if you bought it in the $280s ... you'll be playing with the house's money, which is the best way to invest. You're working with pure profit, so you'll never be the fool," the "Mad Money" host said.
• "Tesla's now reached my initial price target and the thing that's about speculation is that you need to be somewhat disciplined," he said.

Tesla gave shareholders a chance to trim their holdings and take some profits to the bank after the stock surged yet again, CNBC's Jim Cramer said Wednesday.

"I would sell maybe as much as half here — if you bought it when I said — but then let the rest run," the "Mad Money" host said.

Cramer made the call after Tesla shares surged almost 7% to a new closing high. In intraday trading, the stock broke through a fresh price target of $928 issued by Piper Sandler in the morning, though it finished the session near $917 per share. The firm now has the highest price target for Tesla on Wall Street.

Equity in the electric-car manufacturer has grown about 120% in less than two months.

"Selling half your Tesla [stake] here, if you bought it in the $280s ... you'll be playing with the house's money, which is the best way to invest," Cramer said. "You're working with pure profit, so you'll never be the fool."

Given that move, Cramer reminded investors that they must stick to their principles saying: "discipline says that when a stock reaches your price target, you have to let some go. You can't just revise that target up like a lot of the analysts do because that's a recipe for disaster and lacks any rigor."

When the stock was trading at $469 in January, Tesla sported a market value almost the size of the traditional auto giants General Motors and Ford combined. Back then, Cramer thought the stock had much more growth in store saying: "Wake me up when Tesla's double the value of Ford and GM put together."

Wall Street valued Tesla at $168.5 billion as of Wednesday's close. The combined value of the Detroit automakers is $81.8 billion.

"If you listened to me when I got behind the stock last fall, I think it makes sense right now ... to take a little off" and "leave the rest," Cramer said. "Tesla's now reached my initial price target and the thing that's about speculation is that you need to be somewhat disciplined."

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