esla, Inc. (NASDAQ: TSLA) is once again commanding Wall Street’s attention. After a turbulent start to the year marked by erratic leadership, falling EV sales, and CEO Elon Musk’s controversial entanglements with U.S. politics, the electric vehicle giant appears to be staging a notable comeback — at least in the eyes of investors like Jim Cramer.
Speaking on CNBC’s Squawk on the Street, the veteran market commentator declared that “the magic is back” for Tesla, referencing recent gains in TSLA shares and a shift in tone from both Musk and the broader markets. The turnaround follows Musk’s public commitment to scale back his role in Washington, where he had become the face of Trump’s Department of Government Efficiency (DOGE), drawing sharp criticism and alienating a portion of Tesla’s consumer base.
“You knew the moment he was on the call and saying listen I’m gonna really get out of DOGE… suddenly you realize… this could be up 30,” Cramer remarked, suggesting that Musk’s partial retreat from politics has helped repair sentiment around the company.
A Redemption Rally for Tesla?
Tesla stock has been battered for most of 2025, declining nearly 30% year-to-date before a recent rally helped recover part of those losses. The company’s Q1 earnings beat expectations despite announcing it would withdraw its 2025 guidance, citing uncertainty related to auto tariffs and shifting product mix.
Still, investors appeared to reward signs that Musk is refocusing on Tesla’s core operations, particularly its upcoming robotaxi launch and autonomous software suite — technologies that remain central to the company’s valuation narrative.
Cramer described the situation as “a bear market ripping people’s faces off,” underscoring the volatility in broader markets, while speculating that Tesla could be poised for a short-squeeze-fueled breakout if conditions align.
AI Data Centers: A Parallel Story of Lost Momentum
During the same broadcast, Cramer lamented the loss of investor enthusiasm for AI infrastructure, which had dominated equity markets through 2024. While companies like Nvidia and Cummins were cited as potential rebound plays, the sector overall is struggling to regain its previous trajectory, particularly after the January DeepSeek selloff that jolted confidence in high-growth names.
“The data center… it was like the greatest story ever told,” Cramer said, calling the collapse of the thesis “Humpty-Dumpty like.” The implications for Tesla, which has increasingly marketed itself as an AI and robotics company, are complex. The company’s Full Self-Driving (FSD) system and Optimus robot ambitions depend heavily on the very data infrastructure currently losing investor favor.
Political Optics Still in Play
Musk’s political missteps — including his alignment with Trump administration policies and controversial remarks on social media — had cast a long shadow over Tesla’s brand. Demonstrations and vandalism targeted Tesla showrooms in both Europe and the U.S., and several activist shareholders called for greater board independence.
The company was also reportedly exploring CEO succession options, according to The Wall Street Journal, though no formal changes have occurred. Musk, for his part, has reaffirmed his commitment to Tesla, amid pressure from directors and major stakeholders.
Market Outlook: Rebound or Reprieve?
Despite the bounce, analysts remain cautious. Tesla’s long-term valuation hinges on the successful commercialization of its autonomous driving tech and a return to volume growth in EV sales, particularly as competition intensifies globally and demand softens in key markets like China and Europe.
Cramer’s optimism may reflect short-term technical momentum rather than a definitive turning point. But if Musk maintains focus and sentiment continues to recover, 2025 could mark the start of Tesla’s next act — not without risk, but with renewed clarity.
Tesla Stock Rebounds as Jim Cramer Declares “The Magic Is Back”
esla, Inc. (NASDAQ: TSLA) is once again commanding Wall Street’s attention. After a turbulent start to the year marked by erratic leadership, falling EV sales, and CEO Elon Musk’s controversial entanglements with U.S. politics, the electric vehicle giant appears to be staging a notable comeback — at least in the eyes of investors like Jim Cramer.
Speaking on CNBC’s Squawk on the Street, the veteran market commentator declared that “the magic is back” for Tesla, referencing recent gains in TSLA shares and a shift in tone from both Musk and the broader markets. The turnaround follows Musk’s public commitment to scale back his role in Washington, where he had become the face of Trump’s Department of Government Efficiency (DOGE), drawing sharp criticism and alienating a portion of Tesla’s consumer base.
“You knew the moment he was on the call and saying listen I’m gonna really get out of DOGE… suddenly you realize… this could be up 30,” Cramer remarked, suggesting that Musk’s partial retreat from politics has helped repair sentiment around the company.
A Redemption Rally for Tesla?
Tesla stock has been battered for most of 2025, declining nearly 30% year-to-date before a recent rally helped recover part of those losses. The company’s Q1 earnings beat expectations despite announcing it would withdraw its 2025 guidance, citing uncertainty related to auto tariffs and shifting product mix.
Still, investors appeared to reward signs that Musk is refocusing on Tesla’s core operations, particularly its upcoming robotaxi launch and autonomous software suite — technologies that remain central to the company’s valuation narrative.
Cramer described the situation as “a bear market ripping people’s faces off,” underscoring the volatility in broader markets, while speculating that Tesla could be poised for a short-squeeze-fueled breakout if conditions align.
AI Data Centers: A Parallel Story of Lost Momentum
During the same broadcast, Cramer lamented the loss of investor enthusiasm for AI infrastructure, which had dominated equity markets through 2024. While companies like Nvidia and Cummins were cited as potential rebound plays, the sector overall is struggling to regain its previous trajectory, particularly after the January DeepSeek selloff that jolted confidence in high-growth names.
“The data center… it was like the greatest story ever told,” Cramer said, calling the collapse of the thesis “Humpty-Dumpty like.” The implications for Tesla, which has increasingly marketed itself as an AI and robotics company, are complex. The company’s Full Self-Driving (FSD) system and Optimus robot ambitions depend heavily on the very data infrastructure currently losing investor favor.
Political Optics Still in Play
Musk’s political missteps — including his alignment with Trump administration policies and controversial remarks on social media — had cast a long shadow over Tesla’s brand. Demonstrations and vandalism targeted Tesla showrooms in both Europe and the U.S., and several activist shareholders called for greater board independence.
The company was also reportedly exploring CEO succession options, according to The Wall Street Journal, though no formal changes have occurred. Musk, for his part, has reaffirmed his commitment to Tesla, amid pressure from directors and major stakeholders.
Market Outlook: Rebound or Reprieve?
Despite the bounce, analysts remain cautious. Tesla’s long-term valuation hinges on the successful commercialization of its autonomous driving tech and a return to volume growth in EV sales, particularly as competition intensifies globally and demand softens in key markets like China and Europe.
Cramer’s optimism may reflect short-term technical momentum rather than a definitive turning point. But if Musk maintains focus and sentiment continues to recover, 2025 could mark the start of Tesla’s next act — not without risk, but with renewed clarity.
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