Jim Cramer Discussed 10 Stocks That Can Do Well in December

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1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 99

Cramer once again highlighted how Tesla, Inc. (NASDAQ:TSLA) stands to benefit from Musk’s position under the new administration.

“How about Tesla? What can I say that hasn’t already been said, right? I mean, right now, Elon Musk may be the second most important man in America. He may be the most important man in America for all I know, as long as he stays tight with Trump. Sure, Tesla issued a new software update today, and some people actually talked about that, but everyone knew it was coming. People have been buying this one because they realized that Musk has the President-Elect’s ear, and his loyalty will likely be returned with good news for Tesla, especially the self-driving business. To me, it seems very transactional. Duh.”

Tesla (NASDAQ:TSLA) has seen a significant rise in its stock price following the U.S. presidential election, driven by both financial growth and its CEO’s relationship with President-Elect Donald Trump. This was further amplified when the President-elect appointed Elon Musk to a new role focused on improving government efficiency.

The stock surged again after reports that Trump’s transition team would prioritize creating federal regulations for self-driving vehicles, a key area for the company. Current federal laws limit the deployment of fully autonomous cars, but Musk has said that he supports changes that could benefit the company’s ambitions in this sector.

The company continues to make strides in this area. Recently, Ashok Elluswamy, Tesla’s (NASDAQ:TSLA) vice president of AI software, shared on X (formerly Twitter) that the company has begun rolling out version 13 of its Full Self-Driving (FSD) software to customers.

This update is designed to advance every aspect of the driving network, making Tesla vehicles a step closer to achieving full autonomy. According to the company, the new version of FSD is a crucial component in turning the millions of Tesla cars on the road into truly self-driving vehicles.

While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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 the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

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