CNBC’s “Fast Money” traders said they remain puzzled going into Tesla (TSLA)’s 4Q earnings announcement on Wednesday, calling the name’s sentiment negative, and results a ‘coin flip’. Brian Kelly pointed out that he wouldn’t take any “large position” in TSLA.
“If anything maybe you can buy some calls if you think it is going up. I’d much rather buy this on a pullback,” Kelly said.
Guy Adami also advised against a big TSLA position because of the uncertainty surrounding earnings. Trader Tim Seymour added that “the Street doesn’t know what they are going to do.” He advised investors and momo traders to wait for a significant pullback before longing the name.
“It breaks [$180 p/sh]. In the meantime, that is where you play for,” Seymour said. Steve Grasso in a way echoed Seymour’s comments, saying that if 4Q disappoints, shares could dip below $200.
In the past 52 weeks, shares of Palo Alto, California-based auto maker have traded between a low of $177.22 and a high of $291.42. Shares are up 16.53% year-over-year, and lower 2.27% year-to-date. Since its 2010 initial public offering priced at $17 a share, TSLA has risen about 1,032 percent to about $217.36 as of Friday’s close.