• Apple and Tesla's stock prices will skyrocket further despite its explosive growth in recent weeks, CNBC "Mad Money" host Jim Cramer said. 
  • He said: "I know Musk has got more magic in the tank."
  • Apple became the first US listed company to hit $2 trillion (R33.7 trillion) last week, but Cramer does not think the stock is expensive. 
  • But he warned Tesla's annual shareholder meeting, dubbed Battery day, taking place on September 22 could weigh down on Tesla's stock price. 
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    Apple and Tesla have been two of the stock market's biggest successes this year, surging in spite of the coronavirus pandemic, and their rallies have further to run, despite upcoming stock splits for both firms.

    That's according to CNBC's Jim Cramer, who said on his show "Mad Money" Tuesday that both firms' stock prices will continue to rise in the long term.

    "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's optimism comes ahead of planned stock splits for both firms.  Tesla will be enacting a 5-for-1 stock split on August 31. Apple is enacting a 4-for-1 stock split on the same date. This will be Apple's fifth time splitting its stock.

    The stock split will have zero impact on Apple's fundamentals or market value but will help the stock "appeal to a broader base of investors," Apple said. A lower stock price can make buying shares easier to stomach for investors.

    Tesla's stock price has exploded 385% since the start of the year alone. It is currently worth just shy of $2,000 (R33,745), having passed above that milestone last week.

    Read more Morgan Stanley breaks down 3 reasons stocks could be headed for a short-term correction as the market gets dragged higher by a few big winners  

    Meanwhile Apple became the first US company to hit the $2 trillion (R33.7 trillion) milestone last week. Apple's stock price is currently just above $500 (R8,436).

    Cramer said: "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."

    While Apple is trading at a "pretty expensive" price-to-earnings multiple of 29 times, he said the technology giant's stock price is actually cheap given its 10% growth rate. 

    Read more: UBS analyzed how 900 stocks perform on positive COVID-19 vaccine news days — and concluded that these 17 are poised to jump at least 9% on the next cycle of encouraging headlines

    Cramer's view echoes similar comments by US banking giant Morgan Stanley which said on Monday that it expects Apple's stock price to rally as much as 37% over the next year on continued services growth and a major iPhone update. 

    The tech titan's recent quarterly report showed strong revenue, cash flow, and profit growth despite a 1% year-over-year decline in iPhone sales, the bank said. 

    Cramer said: "Apple makes necessities in this digital era. [It] 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."

    In the case of Tesla, he believes long-term "even after a 1700 point gain, I know Musk has got more magic in the tank.

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