Jim Cramer’s Bold Call for Tesla to Double Down on Humanoid Robots

Cyrus ColeMonday, Apr 21, 2025 10:27 am ET
36min read

The stock market’s most vocal personality, Jim Cramer, has once again turned the spotlight on Tesla, Inc. (NASDAQ:TSLA), but this time the focus isn’t on electric vehicles—it’s on humanoid robots. In a series of pointed critiques and visionary calls, Cramer has urged Tesla to pivot sharply toward its AI-driven humanoid robot project, Optimus, arguing that the company’s future hinges on its ability to redefine itself as a tech leader rather than an automaker.

The Pivotal Shift in Focus

Cramer’s recent statements reveal a stark assessment of Tesla’s current challenges. In early 2025, he emphasized that Tesla’s stock valuation should no longer be tied primarily to its electric vehicle (EV) business. “Why should the stock be about cars when the future is about AI and humanoid robots?” Cramer asked on Squawk on the Street, highlighting Tesla’s declining vehicle deliveries and geopolitical headwinds as proof that its automotive dominance is waning.

The data underscores his skepticism:
- Q1 2025 Deliveries: Tesla reported 336,681 vehicle deliveries, missing analyst estimates and marking a 12.3% year-over-year drop in stock price following Q2 2024 earnings.
- European Market Decline: In France, Tesla’s sales fell 37% YoY in March 2025, while Sweden and Denmark saw steep quarterly declines.

Tesla’s Struggles in Automotive

Cramer’s criticism extends beyond sales data. He argues that CEO Elon Musk’s political involvement—a reference to his U.S. Department of Government Efficiency (DOGE) campaign—has distracted from Tesla’s core operations. This, combined with rising competition from Chinese automaker BYD (projected to overtake Tesla in global BEV sales by 2025), has eroded investor confidence.

“Tesla’s stock is under pressure because Musk’s focus has shifted,” Cramer noted. “Investors want to see a company fully committed to its future, not its past.”

The Case for Humanoid Robots

Cramer’s bullishness on Optimus stems from its potential to transform industries and justify Tesla’s valuation. Musk has claimed that Optimus could generate trillions in value, but Cramer stresses that execution is key. “The Optimus robots need faster chips to be competitive,” he said, referencing Tesla’s reliance on semiconductor advancements.

The stakes are high:
- Competitive Landscape: While Tesla’s robotics ambitions are bold, Cramer warns that pure-play AI stocks (e.g., unnamed “cheapest AI stocks” highlighted in his reports) offer faster returns and shorter growth timelines.
- Market Positioning: Tesla ranks 3rd or 4th among Cramer’s discussed stocks, but he ranks it behind firms more directly tied to AI’s explosive growth.

Market Context and Risks

Cramer’s stance reflects broader market dynamics:
- Tariff Pressures: U.S. tariffs have strained Tesla’s supply chain, though its Texas-based Gigafactory provides some insulation.
- Hedge Fund Sentiment: Despite a 34% YTD stock decline in early 2025, Tesla still boasts 126 hedge fund holders—a sign of lingering institutional faith.

Yet risks abound. Musk’s political activities and Tesla’s reliance on him as a visionary leader create volatility. “Even if Optimus succeeds, Musk’s distractions could derail progress,” Cramer cautioned.

Conclusion: A High-Reward, High-Risk Gamble

Jim Cramer’s call for Tesla to “bring on the humanoids” is a clear vote of confidence in the company’s long-term potential—but only if it pivots decisively. The math is compelling:
- Optimus’s Value: Musk claims the project could surpass Tesla’s automotive achievements. If even half of that vision materializes, investors stand to gain.
- AI’s Growth Trajectory: The global AI market is projected to hit $1.3 trillion by 2030, making Tesla’s robotics push a timely bet.

However, the risks are equally stark. Tesla’s stock has already lost 34% in 2025, and BYD’s rise signals a shifting competitive landscape. Investors must weigh Cramer’s optimism against Tesla’s execution history.

For now, Cramer’s advice to “hold for the long term” applies only to those willing to endure near-term turbulence. The question remains: Can Tesla transform from an EV giant into an AI pioneer, or will its humanoid dreams remain just that? The answer could redefine the next decade of tech investing.

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