NEW YORK (TheStreet) -- The S&P 500 closed in negative territory for the second day in a row. 

Tesla Motors (TSLA) - Get Report CEO Elon Musk said the company would cover fire damage on any of its vehicles but that it's unlikely there will be a recall. The National Highway Transportation Safety Administration also announced it would investigate the Model S vehicle to determine if it has an increased risk of catching fire. 

TheStreet's Herb Greenberg was a guest on CNBC's "Fast Money" TV show and questioned the company's ability to cover warranties should there be a recall due to its low cash reserves. 

Craig Irwin, senior vice president of Wedbush Securities, said the investigation should ultimately be a good thing and that it would be extremely unlikely for a recall to occur. Irwin has a $205 price target on the stock and said Tesla's drivetrain costs will be halved by 2017. Investors should keep in mind that Tesla is a tech stock, not an automotive stock. 

Tim Seymour, managing partner at Triogem Asset Management, said the valuation is not supportive of the price and institutions do not seem to buying. He also added that Irwin upgraded the stock near its all-time highs. 

Guy Adami, managing director of, admitted it would be hard to step in as a buyer at this point. 

Brian Kelly, founder of Brian Kelly Capital, said the stock's bounce off $120 was impressive and he would be a buyer with a stop-loss at $119. 

Dan Nathan, co-founder and editor of, suggested that although the investigation could be a good thing, the technical damage to the stock is too bad and it seems likely to head lower. 

Marc Faber, publisher of the Gloom, Boom & Doom Report, was a guest on the show. He likes European companies that do roughly half their business in Europe and the other half worldwide. Specifically, he said he likes telecom stocks and utilities as well as Swiss blue-chip stocks. He concluded that the FederalReserve may increase quantitative easing, not decrease it.

Yahoo! (YHOO) announced it will add $5 billion to its stock buyback program and Adami said the stock could get to $40. 

Seymour was also bullish, saying the Alibaba valuation could push YHOO's share price to $42. 

Rick Sherlund, managing director at Nomura Securities, was a guest on the show. He said Microsoft (MSFT) - Get Report has 10% more upside if Ford's (F) - Get Report current CEO Alan Mulally becomes the next CEO. He also said investors don't seem to want a current Microsoft employee to be the next CEO. He added that cost-cutting and spinoffs could nearly double its earnings per share. 

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Although Mulally has not said he will not take the job, Adami said it wouldn't make sense for him to do so. He added that buying MSFT near these levels is  risky. 

Michael Burns, vice chairman of Lions Gate Entertainment (LGF) , said Hunger Games: Catching Fire should do well, and already has in some markets. He added that the movie has great merchandising opportunities. He stressed that LGF has more than just the Hunger Games trilogy, noting the company's focus on both television and movie franchises. 

Even though the stock has pulled back a bit, Adami said he would avoid it for now and suggested that it could go to $30. 

Best Buy (BBY) - Get Report had its worst day of 2013, falling 11%. Nathan said he didn't want to own the stock when it reports fourth-quarter earnings due to its heavy promotions through the holiday season. 

Kelly said he would rather own Wal-Mart (WMT) - Get Report and doesn't see BBY doing well. 

Seymour said he would rather buy Target (TGT) - Get Report instead of WMT or BBY. 

Nathan pointed out two big trades in the CBOE Volatility Index I:VIX: The February 20/28 call spread traded 100,000 times and the March 23 calls also traded 100,000 times. The trades indicate a large spike in volatility is expected, which generally coincides with a downturn in equity markets. 

For their final trades, Mike Khouw, managing director and primary strategist at DASH Financial, is a seller of the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) - Get Report, Adami is buying UbiquitiNetworks (UBNT) and Kelly said to buy Golar LNG Limited (GLNG) - Get Report. Seymour suggested selling the iShares MSCI Emerging Market ETF (EEM) - Get Report and buying near $41, while Nathan is selling Yelp (YELP) - Get Report

-- Written by Bret Kenwell in Petoskey, Mich.

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.