Elon Musk Might Burn Too Much Cash With SolarCity Acquisition

One of the most highly debated stocks on Wall Street is Tesla Motors Inc TSLA.

Bears continue to argue that Tesla's growth story and margin expansion continues to get delayed or pushed out, which calls into question if the company will ever deliver on its lofty promises.

Bulls are taking a longer-term approach and have complete trust in CEO Elon Musk who has delivered on new projects - even if they're late.

Jim Cramer noted both the bullish and bear point of view. He pointed out what auto enthusiast Jay Leno recently told him, which is that Tesla is the first car company to come along since the big three auto manufacturers.

On the other hand, Tesla's proposed acquisition of SolarCity Corp SCTY is viewed as a "bailout" for a company that is doing quite badly with a heavy cash burn.

"People keep on throwing money at this company betting that one day it will be like Amazon and will flip and make a lot of money," Cramer said. "That's a leap of faith by the people."

Cramer added that Tesla's shareholders "cannot be shaken" to the point where the company could essentially do anything it wants, but this leap of faith could be harmful.

Cramer did acknowledge that Musk is a strong CEO who is "not out to make a quick buck" and his a long-term vision. However, Musk can most certainly "destroy a quick buck" through the merger with SolarCity.