'Fast Money' Recap -- Timing a Tesla Buy, Verizon-AOL versus AT&T-DirecTV

NEW YORK (TheStreet) --  Tesla Motors (TSLA) drove the 'Fast Money' discussion late Tuesday, with the panelists addressing whether to buy the stock given recent events with the company. Also considered by the panelists was the Verizon Communications (VZ) and AOL (AOL) merger deal and how it compares to AT&T's (T) DirecTV  (DTV) deal. 

Tesla received some favorable news on the regulatory front, with the Federal Trade Commission on Monday and the state of Maryland on Tuesday giving the okay for Tesla to sell cars directly to consumers. Additionally, Tesla on Tuesday committed to abide by charging standards in China, potentially paving the way for greater sales of its electric vehicles in that country.

With the ability for direct sales to consumers and its home charging strategy, Steve Grasso, director of institutional sales at Stuart Frankel, said the stock is "still a buy."

Pete Najarian, co-founder of optionmonster.com, said the big concern over why Tesla wasn't having gangbuster sales in China will likely lesson with its commitment to China's charging standards. "I think the stock can go higher," Najarian said.

Joining the panel was James Albertine, an analyst with Stifel Nicolaus, to talk about Tesla. Albertine currently has a price target of $400 on Tesla. The high-end electric vehicle maker closed at $244.74 on Tuesday.

He noted that China was a negative on Tesla's stock and it's now been removed and that the company now has a broader addressable market. He is forecasting Tesla will be able to ship 110,000 units of the Model X and Model X in 2017, putting the company closer to its aggressive goal of shipping 500,000 units per year by 2020.

Two of the panelists, however, warned investors to sit on the sidelines or sell the stock. Brian Kelly, founder of Brian Kelly Capital, advised investors to take profits now and then wait for the company to raise capital and then become a buyer of the stock. Tim Seymour, managing partner of Triogem Asset Management, said while Tesla is a great company, it makes more sense for investors to wait out the volatility in the stock and sit tight.  

The panelists also pointed to some of their favorite software security stocks during the show. Kelly and Seymour both liked FireEye (FEYE), Grasso believes Palo Alto Networks (PANW) is set to trade higher and Najarian is a fan of Intel's (INTCMcAfee security software company.

In comparing the Verizon buyout of AOL and the advertising revenue it will bring the telecom carrier to AT&T's merger with DirecTV, the panel discussed which merger they favor more.

Seymour, Grasso and Najarian all picked the Verizon-AOL deal. "This is what Verizon needed to get into the advertising world," Najarian said. "AOL investors can now breathe a sigh of relief."

But Kelly prefers the AT&T-DirecTV deal for its "risk-reward" potential.

For the final trades of the day, Seymour would "take profits" in ProShares UltraShort 20+ Year Treasury (TBT). Najarian says ADT (ADT) is a buy, while Kelly points to Las Vegas Sands (LVS) as a buy. Grasso, meanwhile, is a buyer of enterprise software company SAP (SAP), noting it is up 8% year to date.

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