The “Fast Money” traders are at odds over Tesla with a key event ahead. Even though Tesla shares rallied on CEO Elon Musk’s plans to unveil his “Master Plan 3” at investor day on March 1, trader Julie Biel warns gains will likely stall. “This business is not really as healthy as it could be,” the Kayne Anderson Rudnick portfolio manager told CNBC’s ” Fast Money ” on Wednesday. “It’s going to face a lot of competition from well-established players.” Tesla shares initially rallied on last Wednesday’s announcement. “[Musk] is great at whipping up a frenzy,” added Biel. “He’s got his Twitter and Tesla bros behind him, and that’s a meaningful force for the stock.” Biel also questioned product reliability. “I updated my Tesla. Its windows just come down randomly. I’ll come back to the garage and the one window will be down. Like it’s just not that quality of a product,” she said. “Building cars is hard. So, I’m worried about the long-term fundamentals of this business and their ability to compete.” A report out this week by J.D. Power finds Tesla ranks among the worst five auto brands in U.S. vehicle dependability. The consumer data and analytics firm officially included Tesla on its list for the first time. Yet, Steve Grasso appears to be stepping on the accelerator. “[Musk] can pull a rabbit out of the hat whenever he wants, and this is another rabbit and another hat,” the Grasso Global CEO said. Grasso got long on Tesla last Wednesday, and he plans to stick with the stock through investor day. “The way it stands right now, and this could always change from a trader, but I’d rather be there,” he said. His bullish case also reflects a favorable technical picture. TSLA 1Y mountain Tesla, 1-year “If you can stabilize above $200 [a share], there’s a real gap in technicals up to $230 [to] $240 for me,” Grasso noted. By Friday, Tesla gave up its gains. But the stock still closed up almost 4% for the week, and has gained 60% so far this year.
Breaking down the trade on Tesla shares ahead of the big investor day