Tesla, Inc. (TSLA): Jim Cramer Says "The Magic Is Back" - Is This Musk's Redemption Rally?

We recently published a list of Jim Cramer Says AI Data Centers Have Potential & Discusses These 9 Stocks. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other stocks that Jim Cramer discusses.

In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer commented on the recent upward movement in the share price of Elon Musk’s car company. Speculating on whether the recent calmness exuded by the Trump administration could mean that markets go back to Liberation Day close, he outlined:

“I think we can because we’ve got Bessent throwing around a little fuel. . .and I really feel that the, let’s use [Elon Musk’s car company] as a good example. Like [the company], you knew the moment he was on the call and saying listen I’m gonna really get out of dodge [DOGE] suddenly you realize. . .that it’s like, okay this could be up 30.”

The CNBC host also commented on the recent sentiment among traders that we might be in a bear market rally. Cramer was aware of these thoughts as he shared:

“But I would say that when I listened to everybody yesterday, all the different traders, ‘bear market rally, bear market rally.’ The bear market’s going to rip their face off. If you see a grizzly in the Yellowstone National Park, you’re supposed to call.”

When co-host Carl Quintanilla remarked that a major investment bank was saying markets could go higher with a short squeeze possible, Cramer replied: “Look I that we have a lot of situations today, they’re going the way of the market but they’re not going too thick.”

One key theme in the show was the AI data center industry. This sector has lost its luster since January’s DeepSeek selloff, yet, Cramer’s adamant that investors are wrong. When asked about his current thoughts about data center stocks, he remarked:

“I’m saying it’s mixed. I’m saying it’s too mixed. It’s too mixed. It’s not unbelievably great like it was. . .it’s mixed. So now it’s like well you know what, I think I could buy [Jensen Huang’s AI company] off that. I think I can buy Cummins off that. But no one’s going in and saying you know what I need to buy these. No one feels like they need to have them anymore. And that’s. . .a shame because it’s very difficult to mount the kind of rally you need.”

Further lamenting the downfall of data center stocks, Cramer said:

“I just feel like what’s, it was like the greatest story ever told. The data center. And, we had, we had the natural gas to power them . . .everything that was in the data center was golden and you just had this thesis. And the thesis came unglued during this period. It’s a little Humpty-Dumpty like.”

Cramer also shared his thoughts regarding stocks not coming off of their opening high as markets started to trade. He said:

“No, it’s interesting you get a change of tone. You know that there’s in the White Hosue, a very hard liner. Howard Lutnick a little bit less hardline. And you don’t hear from them. And I know that this is one of those situations where it’s fluid, you might hear from them tomorrow. But, this is the view of the non-Navarro storyline.”

Our Methodology

To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on April 23rd.

For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders In Q4 2024: 126

Tesla, Inc. (NASDAQ:TSLA) is Elon Musk’s car company which has been one of the most turbulent stocks in 2025. Its shares bottomed for the year in early April as they bled 41.5% due to falling deliveries and Musk’s politics. Since then, Tesla, Inc. (NASDAQ:TSLA)’s stock has gained 17% particularly after Musk shared during the latest earnings call that he will reduce his government activities. Here’s what Cramer said:

“It was a changeover quarter.”

“They’re talking about having a million robots. They’re talking about having much better than Waymo in Austin.”

“What I took away from this is that the reason why you had that really bad quarter if you wanna be simplistic about it, is he’s not been focused and they had this changeover and now he’s back. And the magic is back. So, you can have all these hedge fund managers, all the mutual fund managers who love him, they’ll just sit there and take the stock which is up 17 right now, they’ll take it up to 275 over the next couple of days. Because they love him so much. And he is, he’s not a pied piper, he’s a serious guy.”

“Yes he has. . .I think memories are short. I think they’ll have new models. I think he talked very positively about China. He does have a tariff problem.”

“[On rare earth metal constraints due to Chinese ban] They need a break there. They need some sort of deal. Maybe that’s something that would come up. David, I want to go back to this Waymo issue versus . . I mean he just says, look, Waymo is very expensive. It’s not really their own car. Uh, you’re going to see, in Austin, you’re going to see an explosion of Teslas. I think that’s the next big thing that gets to these managers all juiced and says I gotta buy this thing.”

Overall, TSLA ranks 7th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.