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Cramer: Three Stocks in a Short Squeeze Right Now

As the market hits new highs, three companies have created "amazing short squeezes" by rallying against negative expectations, CNBC's Jim Cramer said Tuesday.

Calling it "one of the most remarkable stocks of the year," Cramer said that the move higher in electric car maker Tesla has put bears in the name against the wall.

"You can argue that (Tesla CEO) Elon Musk is just a visionary, it's a cult stock. But these cars are loved," Cramer said on "Squawk on the Street." After several Wall Street firms raised price targets the stock continued a move higher from lows in late March, when many thought it was overvalued.

(More Investing: Has This 'Darling' of Investors Lost Its Mojo?)

"It is the most genuine short squeeze," Cramer said, suggesting that Musk consider a secondary offering. "Maybe he is holding out for $100," Cramer said, a level that would be about two-thirds higher than the stock's current price.

Another company that has surprised bears is First Solar. "I did not like the quarter, but this is where they told you at the analyst meeting that they would make a lot of money. And what they did was make a lot of money," Cramer said. "The First Solar panels, if you get them on your house, they are a game changer, because they are cheaper than buying retail electricity."

"I am not giving up on First Solar," he added.

Cramer also pointed to Herbalife, which has risen over 23 percent since hitting a 30-day low on April 18. "This stock creeps up every single day. There are some smart people buying," Cramer said.

(Related: Jim Cramer's Bargain Housing Play)

"There is no word, there is no buyback going on. Step by step, inch by inch, Herbalife goes higher," he said. "Herbalife has been a continuing theme here, remember, Carl Icahn is involved."

(Read More: Herbalife Elects Two Icahn-Backed Board Members)

— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul

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