Tesla Motors(TSLA) - Get Report is reporting its third-quarter earnings after the markets close Tuesday and the CNBCFast Money panel weighed in on how investors should play the stock. Other topics that caught the panel's attention included Apple's(AAPL) - Get Report Apple TV and crude oil.
Tesla, which is sitting on an eight-month waiting list for its upcoming Model X, has three important areas that Wall Street will be watching, said Brad Erickson, a Pacific Crest analyst, on the Fast Money show.
One area is the production rampup of its Model S and X, both of which face "significant execution risk," Erickson said. Investors should also keep an eye out for management's outlook on Tesla's gross margins, as well as their discussion of the Model 3, Tesla's affordable mass-market sedan, he added.
And once Tesla's quarterly results are released, Guy Adami, Stockmonster.com managing director, said investors should hope the high-end electric car manufacturer misses one of those metrics. "You can hope the stock resets at the $180 level and you can buy it there," Adami advised, suggesting options is a good way to trade the stock. "If they beat (the earnings estimate) and the stock goes higher, then, unfortunately, you would have just missed it."
David Seaburg, Cowen & Co.'s managing director and head of sales trading, said Tesla would need to "knock it out of the park" with its earnings results and hit all the metrics t move the stock back to its $225 a share level. Tesla closed at $213.79, up 3.3%.
The panel also discussed the new, fourth-generation Apple TV, which was released a week ago and has generated strong sales and reviews within its first week. The device, which sells for $149, is not so much about the hardware as it is about its capability to work with third-party developer apps.
As Apple TV gains traction in the market with its streaming capabilities and third-party developer apps, it poises a threat to Netflix (NFLX) - Get Report , said Tim Seymour, managing partner of Triogem Asset Management.
"Apple and Netflix can co-exist on Apple TV, but Apple will be streaming themselves. Why wouldn't Apple be doing the same thing that Netflix is?," Seymour said. "When I heard this news (about the third party developer apps), I worry about competition for Netflix."
Pete Najarian, co-founder of Optionmonster.com and Trademonster.com, said Apple TV's apps capabilities will move the needle for Apple in the short term. "People are going towards games and a lot of those game apps cost $4 to $10 vs. 99 cents type items," Najarian observed.
However, Seaburg disagreed it would move the needle. He believes Apple's focus will be on its iPhone for the next three years and it may take time to get third party developers to make apps for the living room experience with the Apple TV.
Crude oil and the direction its headed was also addressed. Several of the panelists agreed oil refinery companies are in a better position than the rest of the troubled oil industry.
Tesoro (TSO) hit an all-time high Monday and Valero Energy(VLO) - Get Report a 52-week high, noted Adami. As refinery companies benefit from low crude oil prices, that movement is helping their earnings and stock.
Seaburg believes crude oil is going to go even lower over the long-term, making refinery stocks the place to be. Seaburg said, however, "I would be focused on the bigger cap names."
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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.