Jim Cramer Notes “Tesla Stock Has Become Too Hard to Own”

Tesla, Inc. (NASDAQ:TSLA) is one of the 15 stocks that Jim Cramer recently talked about. During the episode, Cramer discussed why Elon Musk’s recent spat with President Trump is not good for Tesla, Inc. (NASDAQ:TSLA) stock.

“You know, I’m writing this book, ‘How to Make Money in Any Market’… I’ve been very positive about Tesla. It was a paean to Tesla’s fabulous car, self-driving technology, robotaxi, and most of all, their Optimus division, it’s developing humanoid robots. I still believe in the technology, but I just had to make a bunch of revisions thanks to Elon Musk’s erratic behavior. Again, Tesla’s self-driving cars show a sense of awareness that I think is vastly superior to Alphabet’s. Waymo…

Yesterday, Musk got real personal… And as you may have noticed, President Trump is not a super forgiving guy… If I were in Elon Musk’s shoes, I would not pick a fight with the president of the United States. And not just because he spent a quarter billion dollars helping Trump get elected…. But you know what? I don’t care about Starlink or SpaceX.

What I care about is Tesla. And man, if anything goes wrong with Tesla’s self-driving technology, I could easily see this president issuing an executive order to ban them from the road. Just one accident is all it takes, and there will definitely be accidents even if self-driving cars are safer, maybe much safer than human-driven cars. Back when Musk was on good terms with the White House, I had hoped that Tesla’s self-driving cars would be granted approval to drive on the interstate highway system, said that many times on the show. I’m now putting that in the highly unlikely camp.

Robots, again, there are a million reasons that the president could use to ban them, too. So we now have to go back and value Tesla like the car company it is, not the technology company it could have become. If that’s the case, then frankly, it’s fairly valued, maybe even overvalued, as Tesla’s cars are not selling well, and the federal government will no longer subsidize their purchase.

While I have faith in Musk to design and execute better than just about anybody in the world, I have to be realistic. He’s a brilliant businessman, but a downright self-destructive political operator. Musk has created a world of hurt for shareholders. He’s become toxic, which means that Tesla stock has become too hard to own. It’s difficult to own any stock these days, but one that’s in the crosshairs of a vindictive president? No, thank you.”

Tesla (NASDAQ:TSLA) develops and sells electric vehicles and clean energy products, and provides services such as vehicle maintenance, insurance, and charging, along with solar energy systems and energy storage solutions.

While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.