Benzinga - Tesla Inc (NASDAQ: TSLA) shares are swerving lower Thursday on the heels of the EV company's first-quarter report, which showed a continued decline in margins.
On the bright side, CEO Elon Musk noted the Cybertruck is on track for production later this year, but Jim Cramer doesn't expect the vehicle to help turn things around.
What To Know: The long-awaited Cybertruck is still on track to begin production later this year. It could potentially be one of the most anticipated vehicle launches of all time.
A week after it was unveiled in 2019, Tesla said it already had more than 250,000 reservations for the futuristic-looking EV. Near the end of last year, the total number of reservations had climbed to 1.5 million.
On the conference call following Tesla's first-quarter earnings, Musk noted Cybertruck development remains on schedule for a planned start of production this year, adding a delivery event is expected in the third quarter.
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Why It Matters: Cramer doesn't expect the Cybertruck to really move the needle for Tesla. He told viewers Thursday morning on CNBC's "Squawk On The Street" that he certainly isn't buying one, and he doesn't expect many others to get much value from it.
"I'm calling it a toy for Elon Musk fanboys," Cramer said.
He indicated it won't be a mainstream product and compared it to buying a Lamborghini. It's going to cost too much and it's going to have to house a gigantic battery, he said.
Furthermore, "it of course is hideous," he said: "The ugliest truck I've ever seen."
Compared to Ford Motor Co's (NYSE: F) electric truck, it's not going to be nearly as appealing to your average truck buyer, he said. People want something that they can throw tree branches in the back of, and you aren't going to want to do that with the Cybertruck. Again, it's more like a Lamborghini, Cramer said.
"This thing is ugly. I'm sorry, and I love Tesla by the way," Cramer said.
Cramer noted that he owns Ford stock for his charitable trust and suggested Ford will do much better with sales of the F-150 Lightning.
However, the Cybertruck is going to be the number one seller on Mars. "There's no doubt about it," Cramer said with a laugh.
TSLA Price Action: Tesla shares were down 10.54% at $161.56 Thursday afternoon, according to Benzinga Pro.
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