Tesla has undoubtedly had a rocky 2025, but an analysis from Jim Cramer, host of CNBC's Mad Money, could ease the fears of investors.
According to Teslarati, Cramer made some bullish comments about the electric vehicle company on his show, saying it's transforming into a tech company.
While most people know Tesla for the EVs it produces, it also has several other divisions, including robotics, artificial intelligence, charging, energy, and solar. Teslarati noted that it has been dealing in more than just EVs for a decade.
"Tesla is morphing right now," Cramer said. "It's in transition from being a car company to being a technology company. You wanna be in there because the tech is worth a lot more than what it's selling for right now. Don't care where you bought it, care where it's going to."
Cramer's opinion on Tesla has been known to fluctuate, so you have to take his analysis with a grain of salt. Regardless, this should cheer up investors after a shaky year.
Tesla's reputation started to take a hit when its CEO, Elon Musk, began working for the Trump Administration in the Department of Government Efficiency, which made some controversial decisions.
According to CNBC, Tesla's net income decreased 71% in the first quarter of 2025. In June, its stocks fell 14% amid Musk's feud with President Trump, as CNBC reported.
Tesla owners have also been feeling the consequences, as many have seen an increase in vandalism against their vehicles. For example, one Model Y owner's camera caught someone keying their car.
All of this has deterred some consumers from buying an EV, particularly Teslas, which means many people are missing out on the savings of EV ownership, which can be up to $1,500 per year on gas and maintenance.
While Tesla's transition to a tech company may be good news for investors, it may not be so kind to the environment or your wallet.
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Cost concerns 💸 The data centers that power AI require vast amounts of energy and water for cooling. Just one data center in Iowa, run by Microsoft, used 11.5 million gallons of water in one year. This is worrisome because, as the Guardian reported, "The artificial intelligence boom means the Environment Agency has no idea how much water England will be short of in future decades."
Additionally, data centers are contributing to rising energy bills in the Midwest and North Atlantic U.S. states. In early June, households that receive their electricity through PJM Interconnection saw their bills increase 180%.
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