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Morning Bell With Jim Cramer: Tesla Outsmarts General Motors

Jim Cramer shares stock market news about GM’s new electric vehicle, social media stocks performance, and buying First Solar if Joe Biden wins.

Dow futures are flat as stimulus hopes fade and weekly jobless claims edge back towards 1 million. President Donald Trump says Democrats aren't willing to make a deal that doesn't direct money to 'poorly run' states just hours after House Speaker Nancy Pelosi said talks were progressing well.

In the last episode of Mad Money, Jim Cramer told investors to know about new opportunities as early as possible by going right to the source: kids. They inherently know all about the future, including what's hot and what's not. 

TheStreet's Katherine Ross and Cramer are on Street Lightning talking about General Motors’ new electric vehicle, social media stocks’ performance, and buying First Solar stock if Joe Biden wins the presidency.

General Motors Stock: Buy or Sell?

On Wednesday, shares of General Motors  (GM)  were down slightly on the day, off about 1%, but have risen more than 5.5% this week.

Most of those gains come from Tuesday, where shares rallied 6.75% - and as much as 9% at one point - ahead of the introduction of GM's new electric Hummer.

Cramer thinks that GM is not smart enough to go up against Tesla  (TSLA)  because “it is an old company with old ideas” producing highly-priced electric vehicles. “GM is giving all it has got however it still doesn’t matter,” he said.

He is advising investors to buy Tesla stock now because one of the reasons that make it a strong stock is that Elon Musk is trying to lower car prices instead of taking them up.

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Social Media Stocks: Buy or Sell?

Snap,  (SNAP)  the parent of the photography-focused social-media group Snapchat, reported a narrower third-quarter net loss and surprised Wall Street investors by posting an adjusted profit.

The Santa Monica, Calif., company had a loss of 14 cents a share in the quarter, compared with a loss of 16 cents a share in the year-earlier quarter. The latest adjusted profit was a penny a share compared with a 4-cent loss a year earlier. Revenue rose 52% to $678.7 million from $446.2 million.

Cramer said that Snap  (SNAP) , PayPal  (PYPL) , Facebook  (FB) , Twitter  (TWTR) , and Alphabet Inc.  (GOOGL)  stocks are going up. A state of progression is happening now and social media is more effective in reaching younger generations, according to Cramer.

The Stock You Should Buy if Joe Biden Wins the Presidency

Stock market volatility ahead of the election is expected. Some investors may want to be defensive, while others can look straight through the election and have confidence in the economy.

"We're cautioning our clients not to get too trigger happy with their portfolios around the election," said Michael Reynolds, investment strategy officer at Glenmede. "For long-term investors, staying the course is certainly the way to go.

Cramer said that investors should buy First Solar  (FSLR)  stock if they are leaning towards a Joe Biden victory because Biden favors solar companies.

Alphabet Inc. and Facebook are key holdings in Jim Cramer's Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer and his membership team now.