This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

After plunging over 70 percent last year, Tesla shares are up around 60 percent so far this year. However, this nascent rally is now under threat from that direst of omens – the dreaded curse that befalls any stock unequivocally endorsed by the CNBC host Jim Cramer.

Our regular readers are well aware of the Cramer curse. Empowered by the CNBC host’s unceasing ability to parrot the market’s consensus view, the inverse Cramer strategy is currently one of the most potent contrarian investment forces.

Jim Cramer strikes again

Exactly one week ago he was bullish on Home Depot $HD

This morning $HD just reported their worst renevue miss in 20 years pic.twitter.com/V5qHBPhNx2

— Dividend Hero (@HeroDividend) May 16, 2023

Earlier this week, we got another glimpse of this strategy’s potential when Home Depot shares absolutely cratered on missing the consensus revenue expectations by the widest margin in over 20 years. Just last week, Jim Cramer had endorsed the stock as a “win.”

Do note that Tuttle Capital Management’s Inverse Cramer ETF (SJIM) aims to flip Cramer’s recommendations. However, in opposition to the conventional wisdom, the ETF’s NAV is currently down 2.88 percent so far this year, highlighting the difficulty of following a strict contrarian regimen based on Cramer’s edicts and pronouncements that sometimes change by the hour. In fact, the Long Cramer ETF (LJIM) is also down 1.68 percent so far this year.

Tesla bankruptcy imminent… pic.twitter.com/t8mqnxD0hJ

— WhaleWire (@WhaleWire) May 18, 2023

This brings us to the crux of the matter. In his recent Lightning Round, Jim Cramer went uber-bullish on Tesla, stating:

“I would say absolutely, yes, I would add Tesla.”

Such an unambiguous endorsement from the CNBC host now risks inviting the wrath of the Cramer curse.

As most of our readers would know, Tesla did not have a great first quarter of 2023. The company’s quarterly revenue fell by around 7 percent on a sequential basis, spurred by a widespread price cut of between 12 and 15 percent during Q1. While those margin-destroying price cuts are expected to weigh on Tesla’s performance in the second quarter as well, the company has recently started to nominally increase the prices of its EVs, suggesting that the worst of the demand pitfall might be in the rearview mirror.

Tesla MIC 2021-23Q1 avg sales price per units

✴️2021: ¥ 302.1K (sales: 320,743)

✴️2022: ¥ 288.9K (sales: 439,700)

✴️2023: ¥ 249.1K (sales: 137,429)

(痛快舒畅 microblog) pic.twitter.com/2Vb6FdVKjY

— Moneyball (@MoneybaII_R) May 18, 2023

The tweet above illustrates the demand deficit that Tesla faces in China.

Unnamed ex- Tesla sales advisor on M3

✴️20% come for M3

✴️Apr no big news+local purchase subsidies ended (ex Xi'an+Shenzhen), so visits a bit down vs Feb/Mar, but in May they started to rise again, which might be due to summer getting closer

(车fans) https://t.co/PAiL1MJBGz

— Moneyball (@MoneybaII_R) May 18, 2023

Nonetheless, unconfirmed anecdotes do suggest that the situation is stabilizing for Tesla when it comes to the Chinese market, with an increase in foot traffic so far in May.

Tesla Used Inventory Levels in the US

On the state side, used Tesla inventory is currently hovering near year-to-date lows.

Tesla New Inventory Levels in the US

When it comes to new inventory in the US, the Model Y seems to be experiencing a surge in demand. However, the new inventory levels for the Model 3 remain elevated.

$TSLA uberbulls criticizing advertising as not critical to the mission don’t get the mission: To accelerate the world’s transition to sustainable energy. Like a $25K EV which drives affordability to the masses and accelerates EV adoption, advertising that shows EVs’ lower costs,…

— Gary Black (@garyblack00) May 18, 2023

However, big changes are afoot at Tesla. Elon Musk has now communicated his willingness to start placing Tesla-related advertisements. This is expected to yield substantial demand-related dividends.

Will Tesla be able to defy the dreaded Cramer curse? Let us know your thoughts in the comments section below.