Get 10 stock pickers in a room and ask them about a single security and you are sure to get 10 different opinions on how to trade the stock. That maxim holds true for the Real Money contributor team and their opinions on electric vehicle maker Tesla (TSLA) .
The Elon Musk-owned company has had a rough five months since reaching its year-to-date high above $265 in April. Since then, the stock has fallen precipitously below $200, breaking the $205 level of major support Retrowallstreet.com portfolio customizer and Real Money contributer Timothy Collins identified.
Today's news that General Motors' Chevy Bolt subcompact electric vehicle will have a range of 238 miles on a single charge, eclipsing the 218 mile range Tesla's Model 3 vehicle can achieve on a single charge, caused the stock to dip once again. The Bolt will be available for a starting price of $37,500. The Model 3, which is slated to debut in 2017, will be Tesla's most affordable vehicle with a similar starting price point of $35,000.
Tesla began the climb to reach its high for the year following its unveiling of the Model 3 in mid-March as investors cheered the release of an affordable version of a Tesla vehicle that could lift the company out of the doldrums of the niche market it occupies.
That March-April runup caused Rightviewtrading.com publisher and Real Money contributor Robert Moreno comment on the volatile nature of Tesla's chart.
"Tesla shares can accelerate forward really quickly and then go into reverse equally as fast," Moreno wrote after the stock shot up following a tweet from Musk.
Meanwhile renowned stock market technician and Real Money contributor Dick Arms cautions that investors should wait until a stock has finished rallying or falling before trading. Moreno believes that Tesla's move down has concluded and, after advising readers to short Tesla in April, says that those shorts should be covered now. Moreno now sees Tesla as a buy.
Ed Ponsi, managing director of Barchetta Capital Management, believes that Tesla is being hurt by the amount of cash its been burning through, making investors lose confidence. The planned acquisition of Solar City (SCTY) , and the recent registration statement the company filed with the Securities and Exchange Commission indicating that it would raise cash via a debt or equity offering by year's end are not helping that sentiment.
"In recent months Tesla's standard procedure has been to overpromise and underdeliver. The company has recently show an alarming tendency to downplay or bury negative news, as it did in July when it announced a sales shortfall in the middle of the Independence Day weekend," Ponsi wrote.
That type of behavior raises concerns for Ponsi just as much as the company's constant need for a new infusion of capital.
"Perhaps those concerns finally about to be reflected in the price of the stock," Ponsi concluded.
Finally Real Money's resident chartist Bruce Kamich warns investors to just stay away from Tesla altogether.
"A long position in TSLA does not look attractive at this time. Does this mean a short position is preferred? Not really. I don't mind suggesting shorts, but the chart of TSLA right now does not scream 'sell me,' with a good risk/reward ratio," Kamich said.