Cramer Discusses The Cons of A BMW-Tesla Tie-Up

After the news of talks between Tesla Motors Inc TSLA and BMW broke out, the Street was rife with speculations regarding whether these talks will actually lead to an actual collaboration between the two. However, Jim Cramer is not too happy with this latest development. In a discussion with CNBC's David Faber he elaborated on why he thinks collaboration between the two companies is not a good sign.

"Well BMW is supposed to destroy Tesla," Cramer said. "I mean, Tesla's has got nine lives and this is recognition of Tesla’s technology. I know that I keep thinking about the decline in what we thought were the projections of Tesla. Was that Morgan Stanley last week? So, I am not as gung-ho about Tesla because I think number cut means you should walk away from a stock, but I'm sure people will say this is the endorsement we are looking for, BMW is not going to come in."

Cramer continued, "There were a lot of smart people who saw BMW car models and thought this was the car of the future."

Cramer feels that a fall in oil-prices "absolutely" affects the sales of Tesla cars. He cited how the fall in gas prices has lead to an increase in consumption of gas by American car owners and the love that motorists have for gas-based vehicles, to prove his point.

Shares of Tesla closed Monday at $246.72, up 1.6 percent.