Jim Cramer Questions Market Logic and Dissects These 7 Key Stocks

3. Tesla Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

Continuing the conversation about struggling US automakers, Jim Cramer wanted to categorize Tesla Inc. (NASDAQ:TSLA) in a different bracket than Ford and GM due to it’s more tech-focused approach and long-term growth potential, saying:

“I think, obviously, Tesla’s challenged, but Tesla has something entirely else going for it. […]  Tesla obviously has robots. Tesla’s self-driving. It has options.”

During a recent segment where Jim Cramer broke down all of the Magnificent 7 stocks, he expressed the following thoughts on Tesla Inc. (NASDAQ:TSLA):

“Finally there’s Tesla, which has been cut in half from his highs. At a very high level the bull case here is that the president’s close relationship with Elon Musk should give the company major advantages as it moves into self-driving cars or humanoid robots. But man, Tesla’s core auto business has collapsed, and the tariffs will be terrible for them. Musk’s persona is a big negative for huge swath of customers or potential customers. Worse, Tesla is still the most expensive stock in the Magnificent 7 by a large margin, trading at 87 times this year’s earnings estimates. And I’m not even sure we can trust those estimates because their auto business is in such bad shape.”