Jim Cramer Says Musk-Trump Bond "Not Such a Good Reason" to Own Tesla (TSLA) Stock Anymore

We recently published a list of Jim Cramer Recently Looked at These 18 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.

During the episode, Cramer discussed Tesla, Inc.’s (NASDAQ:TSLA) recent performance, as he said:

“By the way, you can also learn a lot from the worst performers of the day. Today it was… Tesla. You know, I don’t even know what to say here. You get a stock down this much, not only do you have to have terrible numbers, which Tesla certainly does, you have to effectively go to war with the president of the United States. So many people own Tesla because Elon Musk was tight with Trump. Now that they’re on bad terms, not such a good reason.”

Tesla (NASDAQ:TSLA) develops and sells electric vehicles and energy products. The company also provides solar and energy storage solutions to various customer segments through multiple sales channels. On May 27, Cramer discussed and commended the company’s humanoid robot project, and here is what he said:

“Despite all the negative publicity and the horrendous sales versus the competitors, it’s done nothing to hurt the stock of Tesla. In fact, as Morgan Stanley’s Adam Jonas… predicted, the fading of Tesla’s car sales has actually brought to the fore all of Musk’s other big initiatives… I’m talking about self-driving specifically in Austin, Texas, next month at this time.

But most importantly, I’m talking about Optimus, his humanoid robot project that will soon be a business, and when it launches, it will be a fabulous one. Musk’s full self-driving initiatives run on AI, specifically neural networks, which give you more adaptive human-like behavior than the other systems. And that’s why investors can ignore Tesla’s car sales.

They believe Musk got the best-selling self-driving technology, and that’s what’s going to matter. That’s why the stock won’t quit. And then if President Trump gets involved, it won’t be pushing for cars to go from Austin to Houston. It’ll be having Tesla self-driving all over the interstate highway system, which, last I looked, is still federal. Tesla, the tech company, is much more powerful than Tesla the automaker, and that’s why the stock finished up nearly 7% today.”

Overall, TSLA ranks 18th 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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term 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.