Jim Cramer on Microsoft and Other Stocks

3. Tesla, Inc. (NASDAQ:TSLA)

Cramer noted that Tesla, Inc. (NASDAQ:TSLA) stock fell on Tuesday but said that he would not bet against Musk.

“I’d be remiss not to mention Tesla. After days and days of rallying pretty strictly because CEO Elon Musk is tight with the President-elect, the stock took a breather today, falling 6%. Maybe it’s a pause that refreshes. I sure wouldn’t bet against Elon Musk here, but there are plenty of scalpers out there who bought Tesla the day after the election and they aren’t even sure how the company’s doing. For them, this was a short-term Trump trade, and they sure as heck hit the eject button today.”

Tesla (NASDAQ:TSLA), known for its cutting-edge electric vehicles and energy solutions, has seen significant gains in its stock price following the U.S. presidential election. The company’s founder, Elon Musk, has become a central figure in the aftermath of the election, as President-elect Donald Trump appointed him to a newly established role focused on improving government efficiency.

Musk, alongside former Republican presidential candidate Vivek Ramaswamy, will co-lead the Department of Government Efficiency, an initiative that Trump has stated will operate outside the typical structures of government. Trump’s appointment of Musk is seen as a move to streamline government operations by reducing bureaucracy, cutting unnecessary regulations, and addressing wasteful spending. In a statement, Trump emphasized that Musk and Ramaswamy would help pave the way for these changes and revamp federal agencies.

According to Daniel Ives, an analyst at Wedbush Securities, Musk’s increasing influence within the White House could lead to significant advantages for Tesla (NASDAQ:TSLA). Ives described Musk’s involvement in the Trump administration as a strategic move, suggesting that the potential benefits for both Musk and Tesla far outweigh any risks. He characterized Musk’s decision to align with Trump as a “poker move for the ages,” positioning Musk to leverage his growing reach across federal agencies to benefit his business interests.