Jim Cramer Thinks Trump's Plans For Robotaxis Are 'Fanciful,' But He Is Still Bullish On Tesla Stock: 'The Musk Premium Will Work Its Magic In Other Ways'

CNBC’s Jim Cramer said on Monday that he believes reports of President-elect Donald Trump possibly relaxing autonomous driving regulations is a “bad reason” for owning Tesla Inc. TSLA stock. However, the Mad Money host is all for buying the EV giant’s stock.

What Happened: Bloomberg on Sunday reported that the Trump transition team wants to make a federal framework for self-driving cars, making it easier to deploy self-driving vehicles in the country. However, Cramer thinks that it is “too good to be true” and a “bad reason” for buying Tesla stock.

"While I don't buy the national self-driving mandate, I think nothing truly dulls the case for owning Tesla," he said. "The Musk premium will work its magic in other ways, perhaps favorable municipalities and Tesla rentals next to federal highways."

The Trump transition team’s plans for robotaxis are “just plain fanciful,” Cramer said while noting that several state and local governments would have to agree to the new rules.

"No matter what, though, always remember that Tesla's a tech company," Cramer added. "The others are automakers, and a tech company can get an insanely high price-to-earnings multiple with no one blinking so much as an eye about it."

Why It Matters: Tesla is looking to deploy a fleet of autonomous vehicles starting next year in Texas and California. However, the company has yet to receive regulatory approvals for the same or achieve vehicle autonomy with its full self-driving (FSD) driver assistance technology.

Musk, however, has previously expressed optimism that the technology will enable autonomous driving with future software updates. However, the billionaire CEO is known for providing over-ambitious timelines that the company cannot deliver.

Musk has previously said that Tesla's robotaxi fleet will function like a combination of Airbnb and Uber. While a certain portion of the fleet will be owned by Tesla, individual customers can also add or subtract their vehicles to the robotaxi fleet at will. As for riders, they can summon a car using the Tesla App, Musk said, putting Tesla as a competitor to Uber.

Price Action: Tesla stock closed 5.6% higher on Monday at $338.74, but it was down 1.2% in premarket trading on Tuesday. Year-to-date, Tesla stock is up 36.4%, according to Benzinga Pro data.

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Photo courtesy: Tesla