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Tesla is headed to $160 at a minimum: Strategist

Talking Numbers

After a couple of months of bad press, Tesla's shares may be a buy, says one technical strategist.

Just one week ago, shares of Tesla were hovering around $116, a steep drop from its September high of $194.50. Three publicized Tesla-related fires, concerns about its future sales, and serious badmouthing by "Batman & Robin" star George Clooney all seemed to cloud the stock's prospects.

Today, however, it got a couple pieces of good news which may make investors believe things aren't so bad for the electric carmaker. First, regulators in Germany decided not to take action after reviewing data from the fires in the US.

(Read: Tesla rises as German probe finds no defects)

However, the big excitement of the day was when Morgan Stanley analyst Adam Jonas published a positive note on the company, saying:

"We believe negative news flow on Model-S fires, while clearly disruptive to the stock's momentum, will not cause material damage to the business."

But Jonas' views on Tesla should be put in perspective, says Andrew Busch, editor and publisher of The Busch Update, on CNBC's Street Signs' Talking Numbers segment.

"The thing with analysts is you have to be careful where they start from because [Jonas] had a $153 call on this prior to his call that this was going to be his top pick for 2014 in the auto sector," says Busch. "I will tell you this about analysts: Be careful about what they say. You've got to know where they've been previously to get an understanding about what they're talking about now. That's what is going on with Tesla. The price had fallen so far below his actual target price, that he came out today and said [Tesla] is cheap compared to where [Jonas thinks] it could go."

Busch thinks investors should hold off on buying Tesla's stock given what he considers poor handling of its most recent controversies.

(Read: In midst of investigation, Model S tops latest survey)

Yet Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, sees a buying opportunity in Tesla based on its charts.

"I'm still a buyer here, even given today's fantastic performance," says Ross. Based on the fact that the stock price didn't break below the 200-day moving average and ultimately reversed from it, Ross believes it will move significantly up from here.

"I think this stock trades $160 at a minimum," says Ross. "You want to be a buyer right here, right now."

To see the rest of Busch's fundamental analysis and Ross' technical analysis on Tesla, watch the video above.

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