Tesla Motors Inc (NASDAQ:TSLA) is slowly getting to put a mark in the Chinese market, with its launch of Model S Sedan in April. Chinese government also helps Tesla Motors Inc (NASDAQ:TSLA) in spreading its wings across China with its support for electric vehicles to reduce the pollution in its cities. But this has taken a hit with the announcement that Tesla’s Chinese head will be parting ways with the company shortly. Traders Dan Nathan and Pete Najarian talked on CNBC about this announcement and its impact on the Tesla Motors Inc (NASDAQ:TSLA) stock.
CNBC’s Melissa Lee reported that Tesla Motors Inc (NASDAQ:TSLA)’s Chief of China, Veronica Wu will be resigning from her role in some days. She added that Wu was with Tesla for more than a year and this resignation announcement comes shortly after resignation of Tesla’s China Communications Chief Officer.
Nathan pointed out that China is very important region for Tesla Motors Inc (NASDAQ:TSLA)’s growth and they need to get it right. He pointed at the stock had hit an all-time high not very long ago, but has dropped by around 30% since then. But he feels that they need to maintain the stock price at about $200 level. He feels that Tesla Motors Inc (NASDAQ:TSLA) is doing a good job of doing that. He said that the news like this is bullish on Tesla Motors Inc (NASDAQ:TSLA).
“Valuation is always going to be a big concern. […] If you get this stock at the right place and you put around you at the right time horizon, I think it makes sense,” Nathan said.
Najarian mentioned that they talked a lot of about the low volatility of Tesla Motors Inc (NASDAQ:TSLA) stock, but he feels that this stock is no longer cheap. He thinks that the opportunity is closed for now and it might open again any time.
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