Envestnet’s Zachary Karabell And Northland Capital Markets Colin Rusch Discuss About Tesla Motors Inc (TSLA)’s Mystery Product?

Tesla Motors Inc (NASDAQ:TSLA) sure knows how to grab everyone’s attention. CEO Elon Musk posted a tweet last week saying that it was ‘about time to unveil the D and something else.’ Though it is unclear what the D or the something else meant, the tweet was accompanied by a photo which suggested a new vehicle and was accompanied by the date October 9, 2014. With just a couple of days to go for the mystery reveal, Envestnet’s Zachary Karabell and Northland Capital Markets’ Colin Rusch discussed their strategy for Tesla on CNBC’s Stock Brawl.

Tesla Motors Inc (NASDAQ:TSLA)

Karabell felt strongly that no matter what the big unveil was, he would not alter his opinion about Tesla Motors Inc (NASDAQ:TSLA) when its stock was trading at 50% lower than what it was now, that though he loved the company, he would not be interested in investing in its stock.

“I think Elon Musk is a visionary leader, I think this is a transformative company but they would have to sell half a million cars a year within the next seven or eight years up from a current 35,000 to even trade at a healthy premium to automobiles,” he said.

However, he remained hopeful about Tesla’s upcoming Nevada Gigafactory which has promised to slash electric car prices by manufacturing highly efficient batteries at a reduced cost.

Rusch stated that he too was not sure what Tesla Motors Inc (NASDAQ:TSLA) would unveil this Thursday but went on to guess that it might be a new sports car or a motor cycle or a base fleet vehicle. He stated that the fact that the company is evolving its product portfolio is a good sign for investors. “A big value proposition for us is that they have built a foundation where they can develop products quickly and cost effectively and bring them to market and continue to create shareholder value,” he explained.

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