Tesla Motors Inc (NASDAQ:TSLA) has replaced Apple Inc. (NASDAQ:AAPL) in the mind of investors, Mad Money host Jim Cramer said Tuesday on CNBC’s Squawk on the Street. Cramer said that the latest research note from Goldman Sachs fully explains the potential of Tesla and its charismatic CEO Elon Musk.

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Cramer changes his view on Tesla

Notably, Jim Cramer said on February 27 that the electric vehicle maker has to “smash” the U.S. electrical grid to justify its lofty valuations. And he had warned Tesla Motors Inc (NASDAQ:TSLA) investors that they are “playing with fire.” Cramer said at the time that he is not interested in Tesla because there are a number of other fabulous companies that are doing well, and have dramatically lower prices.

The Goldman Sachs research note that Cramer cited gives Tesla Motors Inc (NASDAQ:TSLA) different valuations based on how disruptive it can become going forward, as well as whether or not Elon Musk can follow in the footsteps of Steve Jobs, Henry Ford or the Maytag Repairman. Cramer said we need to focus on Tesla because this is all investors are going to be talking about.

Tesla Motors Inc (NASDAQ:TSLA) has become the darling of investors, as it has gained more than 580% over the past 12 months. Shares of the Palo Alto-based company surged to a record high of $265 after it announced the Gigafactory plans. The $5 billion battery production company will provide jobs to at least 6,500 people.

What if Tesla CEO becomes Henry Ford?

Goldman Sachs revised its price target on the stock to $200, valuing Tesla Motors Inc (NASDAQ:TSLA)’s automobile business at $180 and its battery business at $20. But the bank noted that the company has significant upside potential if its ambitions prove to be fruitful. The research firm values Tesla at $442 if it can follow the footsteps of Apple Inc. (NASDAQ:AAPL).

Goldman Sachs said the future is even brighter for the electric vehicle maker if Elon Musk becomes the next Henry Ford. If Tesla Motors Inc (NASDAQ:TSLA) becomes a truly successful mass-market automaker like Ford Motor Company (NYSE:F) in 1900s, its stock should rally to $478. And if Tesla’s technology delivers a similar disruption as durable goods like refrigerators did upon their introduction, there will be a modest upside. Following that route means a small market share and the share price of $329.

Tesla Motors Inc (NASDAQ:TSLA) shares jumped 0.98% to $242.40 in pre-market trading Wednesday.