Jim Cramer Warns Investors Against Over-Speculation in Tesla's Electric Vehicle Market

Wall Street’s craze for electric vehicle stocks is coming to an end after valuations ballooned to levels that are unwarranted, CNBC’s Jim Cramer said Tuesday. That is with the exception of Tesla, the Elon Musk-helmed electric-vehicle company whose stock price has increased fourfold from its low point in March. “I think the rest of the electric vehicle space looks like a boom, and then more like a bubble, one that’s already started to burst,” the “Mad Money” host said. “We keep seeing more and more of them come public, often via reverse mergers with special purpose acquisition vehicles,” known as SPACs, “and after some big moves higher, their stocks have started to implode.” The electric vehicle, or EV, market is an emerging segment of the auto industry powered by the growing consumer interest in more eco-friendly products. The International Energy Agency projects that the EV adoption will reach 125 million cars by 2030.