The animations are set up for tactical missiles/icbms. So I'd recommend this be used as a tactical missile, unless you want some pretty ugly results. It was technically a theater missile and judging by its characteristics, it would have likely been able to carry a nuke to tactical ranges without any modificiations, and carry one to theater ranges with modifications that would have been likely to have happened by the time the Germans had nukes.
I don't know if the AI will use it if you flag it as tactical missile only (not a nuke).