NEW YORK (TheStreet) -- Tesla (TSLA) CEO Elon Musk defended its deal with SolarCity (SCTY) earlier this week, but Consumer Edge Research still has some concerns about it, the research boutique's senior analyst James Albertine said on CNBC's "Closing Bell" on Friday afternoon. The boutique has an "overweight" rating and $190 to $260 price target on the stock.
His comments come after Baron Capital founder Ron Baron joined CNBC's "Squawk Box" earlier today and said, "I think in this investment from here in the next 15 years, we can make 30 to 50 times our money."
Baron seems to be confident in Tesla because the electric car company is making progress in the solution to electric transmission and power generation, Albertine said.
However, the problem is that Tesla now has "two narratives," Albertine argued. Its auto business under Tesla is "hard enough," although it's "made progress" and has "a lot of merit," he said. On the other hand, the solar panel opportunity with SolarCity is "such a long-tailed story in terms of consumer adoption."
"We see a hard time arguing for the payback here in the near-term and many, many investors aside from Ron sort of need that confidence in order to invest today," Albertine explained.
Consumers are not going to adopt solar panels as quickly as they might adopt an electric car from Tesla, he said. Even with the auto business, the electric car is not yet like the Apple (AAPL) iPhone of the automotive sector. People are still buying a variety of cars.
"It takes a long time to play out," he said.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Tesla as a Sell with a ratings score of D+. This is driven by a number of negative factors, which the team believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks the team covers.
You can view the full analysis from the report here: TSLATSLA data by YCharts