Jim Cramer Shares Why Tesla (TSLA) Is Better Than Ford

Ramish Cheema

Mon, May 18, 2026 at 10:50 AM EDT 2 min read

We recently published Jim Cramer Discussed A Mysterious Yellow Light & These 9 Stocks. Tesla, Inc. (NASDAQ:TSLA) is one the stocks discussed by Jim Cramer.

Electric vehicle manufacturer Tesla, Inc. (NASDAQ:TSLA)’s shares are up by 20.7% over the past year and are down by 3.6% year-to-date. Roth Capital discussed the firm’s shares in late April. It kept a $505 share price target and a Buy rating after Tesla, Inc. (NASDAQ:TSLA) reported its first quarter earnings report. Among the factors that the firm discussed included the company’s capital expenditure guidance for growth initiatives. However, RBC Capital reduced Tesla, Inc. (NASDAQ:TSLA)’s share price target following the earnings. It cut the target to $475 from $480 and kept an Outperform rating on the stock. The bank commented that the company’s gross margins were healthy and added that it expected FSD subscriptions to grow. In his previous remarks about Tesla, Inc. (NASDAQ:TSLA), Cramer has asserted that CEO Elon Musk’s approach of defining the firm as a technology company is the correct one. In this appearance, he praised the firm for its battery expertise:

“If you think Ford’s great with batteries, which was the flavor de jure the other day, oh my god just go buy Tesla. Because they are batteries.”

Photo by Michael Fousert on Unsplash

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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