The "Mad Money" host argued Tesla's "epic run" began with its May 8 earnings report and conference call. At that time, Tesla's stock broke out from $55 to $88 a share in just a few days.
So what happened?
1. Tesla defied Wall Street's expectations for a loss and actually reported a $15 million profit, Cramer said.
2. While some market observers thought Tesla had little to no customers, the automaker said it actually exceeded its own production targets to meet increased demand. Tesla had to produce 500 more cars that quarter on top of the 5,000 they'd initially planned to build, and they now intend to make 21,000 cars this year, Cramer noted.
3. Some market observers said Tesla was spending more on its vehicles, but earning less. As it turned out, though, Tesla said it was spending less and earning more, Cramer said. In turn, gross margins—profits after the cost of sales—improved from 8 to 17 percent, exceeding expectations.