Tesla Motors Inc (NASDAQ:TSLA) should be bought at lower numbers than it is currently trading at the moment, David Seaburg and Ari Wald told Amanda Drury in an interview on CNBC‘s ‘Talking Numbers’.
The comment about Tesla Motors Inc (NASDAQ:TSLA) comes as the stock has steadily climbed in the year. In fact, Tesla Motors Inc (NASDAQ:TSLA) hit an all-time high this week as it has continuously climbed 75% within the year, according to Drury.
This prompted the CNBC host to ask David Seaburg, head of sales trading at Cowen Group Inc., and Ari Wald, head of technical analysis at Oppenheimer & Co. Inc., if Tesla Motors Inc (NASDAQ:TSLA)’s run will continue and whether or not the company is unstoppable.
David Seaburg, though believing that the company has a possible long-term success story, presented his case which basically tells prospective investors to be patient and buy the stock on a pullback.
“Unstoppable, I think, is a very, very difficult thing to define. But up here at these levels, I’m not a buyer. I like the story and I think, long-term, the stock is going to do well, but I think at this current level, I would wait to get a pullback. I think it is going to be choppy and I think at around the $217-level, you [can]get back in and maybe reengage. I think right now, you are looking at a stock that is essentially weak hands. The hedge funds have essentially been out of the picture at these levels. It’s in the hand of day traders right now so I think you can really see some weakness here. Long-term, they have their battery technology, which they can license out – and I think that can be a compelling long-term story, or that’s the theme behind the opportunity here – but, again, it’s an execution issue. I’d wait here and look for much lower levels to buy this stock,” he explained.
Meanwhile, Ari Wald was more optimistic about Tesla Motors Inc (NASDAQ:TSLA) but he echoed what Seaburg advised, which is to buy the stock at a lower price than its current price.
“[…] I can’t tell you how much I have been asked about it [Tesla] recently. It has been back up to $265. That’s the level that caused some selling pressure at its peak back in March. We got our clients in this a couple of weeks ago. At this level, it is a little bit more difficult, but I think eventually, we do get the breakout. What I really like about the setup here is the spread between the stock’s 50- and 200-day moving average. It’s really just starting to widen. What this tells me is that momentum is really just starting to pick up again. I think, as far as my downside, I’m looking to buy it more closer to $245 but I think we get the breakout. I think the stock moves above $300 looking out the rest of the year,” Wald said.