Tesla is feeling what Ford and GM have already been going through, says Jim Cramer

What really matters is that we haven’t had a sell off and so long that we’ve forgotten how to handle it. So tonight let’s go over the rules of the road. Yes, Rd. rules for dealing with a sell. Well, what do you have to do? First, you have to identify the real reasons for the decline, not the headlines. Now we know that interest rates have gone up, we need to decide whether the move is significant. The answer to this historically is that this kind of move typically doesn’t do much damage to the economy and therefore not much to earnings, which is what we focus on and may have money. Sure there’s some weaknesses Paychecks told us to release today. Something will Plumb with him later on tonight. And I quote the softening and hiring we we started to see in the second quarter continued in the third quarter. There’s more choppiness and hiring across customer segments and industry now and quote worrisome only Jeremy, the next line which is quote, our clients tell us they still can’t find qualified employees and are not willing to hire just anyone at higher wage rates especially in areas with minimum wage increases and aggressive legislative changes. End Quote, what do we do with that? I mean California maintain a higher minimum wage naturally that’s going to cut into hiring and it is harder to find qualified people. That’s OK. Nothing new. Next, Tesla’s numbers were we couldn’t expect, I mean much. We 3087 thousand vehicles when we expected them to sell more than 457,000. That was their biggest estimate missed in seven years and their first year over year declines is 2020. Tesla’s a headline grabber though isn’t it always will be. But let’s unpack this. We know that there’s been an awkward pause in electric vehicle buying in our country. China’s hurting with real price cutting in the EV market. Berlin’s been disrupted by sabotage. To me, this is simply par for the electric course in terms of America. We can blame higher interest rates when we can economy, but honestly, I think the country’s turn on EVs for now. It’s like everyone wants 1 already has one. Tesla’s simply feeling what GM and Ford were feeling. OK, the real problem with Tesla is that it turns out to be a mortal car company and not an immortal tech company. 3rd issue was PVH, the big apparel company. It’s behind Calvin Klein and Tommy over here. That gave us a terrific number. Absolutely. But then it charged us by talking about a slowdown of some significant proportions, a forecast that caused the stock to drop 22% today. Now when I checked the port though, it was about weakness in Europe and we’re not going to extrapolate from Europe to the United States, but business remains much stronger. I said in our game plan last Thursday that the apparel stocks were coming in way too hot going into PVH this quarter. Well, that sure turned out to be the case, huh? But I don’t have a solid me through to our country. And then there’s the week, there’s health insurers. Wow. Humana off more than 13% today. United Health down over 6%. CVS, which owns Aetna, shredding another 7%. Bad for the consumer? No, hardly. I mean, the Bite administration just decided not to give insurers a bigger rate increase for the Medicare Advantage plans if the government is sided with the insurers. Now, that would have been horrific health care cost inflation. Instead, it’s good news for most Americans, even if it’s all for the match. Karen St. And it is awful. Don’t miss a second of Mad Money Follow at Jim Cramer on X. Have a question? Tweet Kramer Hashtag Mad Mentions Send Jim an e-mail to [email protected] or give us a call at one 807 four Three. CNBC Miss something? Head to madmoney.cnbc.com.

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