With Tesla (TSLA) Volatility High, Cramer is Sitting This One Out

Tesla Motors (Nasdaq: TSLA) is off again today following negative news regarding investigations Tuesday, along with subsequent analyst commentary.

During Jim Cramer's Mad Money last night, the noted investor commented on recent activity in Tesla shares.

Cramer said the stock is basically being pulled between those that love the cars and their potential and others that simply don't like the stock. He warned that if recent Model S first dent production, shares of the company are valued far too high.

About 25 percent of Tesla's shares are being held short, Cramer noted. Along with the daily controversy behind the name, more wild swings are expected in the stock.

For now, Cramer thinks Tesla is a little to unpredictable and is staying on the sidelines.

Since hitting $193 at the end of September, Tesla shares have dropped 35 percent following reports of three Model S fires in October. Shares are down 3 percent Wednesday, though off of earlier lows.

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