CNBC's Jim Cramer said Thursday that Tesla's success reminds him of what has been accomplished by Amazon and Netflix, companies that overcame early doubters to upend industries.
"Wall Street never runs out of money for a company that has the best product, flawless execution and off-the-charts demand," the "Mad Money" host said. "They don't come around very often, but when they do, the usual financial concerns go out the window and ... the real believers make big money."
It is clear Tesla — after another "staggering" quarter Wednesday — is one of those companies, Cramer said.
While it's possible for a money-losing company to string together a few quarters "where it looks like everything's finally coming together," Tesla has proven its staying power, he argued.
Shares of Tesla were up more than 10% on Thursday, hitting another fresh intraday record high of $650.88, following its quarterly earnings report. It closed Thursday's session at $640.81.
The company posted fourth-quarter earnings of $2.14 per share, easily eclipsing expectations of $1.72 per share. And importantly, Tesla said vehicle deliveries should "comfortably exceed 500,000 units" in 2020.
In all, Tesla's stock is up more than 150% in the last four months and more than 50% in the new year.
To really understand Tesla's current situation, Cramer said, it is best to look back at the rise of Amazon and Netflix.
In the early days of those companies, Cramer said there were significant doubters who thought they would lose too much money before being able to turn a profit.
Amazon, he said, was "the most shorted stock around, with one short seller after another arguing that the business couldn't last."
Netflix was in a similar position, too, he said. But like the strong vision provided by Amazon CEO Jeff Bezos, Netflix was able to find its footing behind Reed Hastings as it pivoted to video streaming.
They may have been losing money, Cramer said, but "Wall Street will gladly raise money for a talented executive who dreams of disrupting an entire industry. They love that."
In the end, the short sellers of both Amazon and Netflix were "obliterated," Cramer said.
Tesla CEO Elon Musk is an executive like Bezos and Hastings, and the short sellers of the electric-vehicle maker are finding themselves in a similar situation, Cramer said.
On Thursday alone, investors betting against Tesla collectively lost more than $1.5 billion.
Cramer admitted that he was a little hesitant to join the crowd of Tesla bulls, saying he wanted "to wait for a breakout quarter that told me Tesla would be able to make it."
But Cramer has embraced Tesla now, and the stock is up more than $300 since he turned bullish in the fall.
And with Tesla's high-quality vehicles and its ability to get new factories off the ground to meet consumer demand, Cramer said he continues to see brighter days ahead for the company.
"I'd rather be too late than too early when I'm dispensing advice here because I don't want to bury you in situations that don't work out," Cramer said.
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Jim Cramer: Tesla's success is reminiscent of Amazon and Netflix - CNBC
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