Apple, a communications device maker, and Tesla, a motor vehicle manufacturer, valuations are at or near record levels, but Cramer isn't buying the notion that their stocks are expensive.
"If you judge Apple as a pure hardware play, or you judge Tesla as a pure car company, then you're right, all these moves are all smoke and mirrors," the "Mad Money" host said.
Tesla shares have surged triple digits this year, giving the company a $375 billion mark—et valuation, more than Toyota, General Motors and Ford combined. Apple holds a market cap of $2.1 trillion with shares up 71% year to date.
The way Cramer sees it, Apple is a consumer products company that sells must-have technology. As for Tesla, it's a technology firm that happens to make cars
Apple is preparing to issue a stock split, or divide its outstanding shares, on a four-for-one basis. The split will reflect in the trading price on Aug. 31.
Tesla is set to divvy up its outstanding shares five-for-one that same day.
"They're both stocks — and in the end, stocks can break your heart — but if Elon Musk and Tim Cook continue to execute, I bet their long-term trajectory is up," Cramer said.
Cramer has an oft-repeated mantra for Apple — "own it, don't trade it" — and the former hedge fund manager is staying by it in the post-split, which will be the fifth split in the company's lifetime on the public market. While the stock is trading at a "pretty expensive" price-to-earnings multiple of 29 times for a tech company with a 10% growth rate, it would rank among the cheapest in the industry if valued as a consumer product company, he said.
The host particularly likes Apple for its service business and customer loyalty, which is siphoned through its various devices, such as handhelds, laptops and watches, that provide multiple pools of revenue.
"Apple makes necessities in this digital era," Cramer said. The stock "could pull back as many of the owners sell a share of the four to lock in their gains—that's the old pattern—but after the split-induced pullback, you know what, time to buy again."
Turning his attention to Tesla, Cramer admitted that he would not be a buyer himself at current levels. A year ago the stock was selling for $211.40. The stock has matured more than 850% since then, closing at $2,014.20 Monday.
Outside of selling electric cars, Tesla has its hands in the solar and battery industries, the latter of which Cramer thinks has promise. The host, however, signaled that Tesla shares are at risk of stumbling about a month from now at its Battery Day event Sept. 22.
"I fear that Battery Day might end up being some letdown, but you've got my blessing to buy it into any split-related weakness next week, then you can ring the register on part of your position before Battery Day on Sept. 22nd, just in case," Cramer said.
"Long-term, though, even after a 1700 point gain, I know Musk has got more magic in the tank."
Disclosure: Cramer's charitable trust owns shares of Apple.