The stock market has split into two camps right now, CNBC's Jim Cramer said Tuesday. One based on eyeballs and hype, he said, and the other based on basic investing fundamentals and traditional metrics.
"You can't have two stock markets at once," he said on "Squawk on the Street." "It doesn't work."
Cramer highlighted that Morgan Stanley doubled its price target on electric carmaker Tesla Motors to $320 a share Monday, setting up the stock for huge gains. He lauded both the Morgan Stanley analyst who made the call and Tesla CEO Elon Musk, comparing the forward-thinking entrepreneur to Henry Ford and Thomas Edison.
Still, that kind of exuberance makes Cramer uneasy.
(Read more: Tesla soars, Ford falls in 'Consumer Reports' study)
"I get nervous when I see price targets double," he said. "I get nervous because we've been around when price targets double and stocks don't double along with the price target."