Tesla Inc. (TSLA) has hot cars, but that doesn't necessarily mean it is a hot long-term stock, TD Ameritrade chief market strategist JJ Kinahan says.
Kinahan joined Jim Cramer at TheStreet's recent Financial Success Strategies teach-in, and during a fireside chat, the two offered insight into Elon Musk's electric-car baby.
"Our clients tend to really like Tesla. It's served them well over the last year, but I draw some parallels on a few things," Kinahan said, offering comparison between Tesla and other investments that have exciting products but unreliable stocks.
While investors can love the electric cars that Tesla releases, shares of Musk's creation may be less than reliable. That's due in large part to Tesla's difficulties on getting its new Model 3 produced. What was supposed to be the everyman's Tesla, the Model 3 has been met with continual production delays as the company struggles with its processes and systems. Musk had promised 1,500 Model 3 deliveries in September, but the company offered only 260 in the entire third quarter.
"If you go back and you look at six months ago, with this car, they were supposed to be getting 10% market share. It's not being produced," Kinahan said.
But regardless of production whiffs and what's shaping up to be a troubling cash-burn rate, Tesla still attracts investors, especially young ones, like flies to honey.
"It really is amazing. I think it's definitely for Millennials, it definitely holds appeal. There's no question about it," Kinahan noted.
The issue with Tesla, Kinahan and Cramer said, is that investing in an equity just because you like the product isn't a sound means of investing.
Cramer opined that Tesla's stock has been able to largely benefit from the hype surrounding its cars. Musk has led the company with forward-looking vision that has stunned most investors and even some original dissenters in the auto space. But while Tesla's stock has managed to stay afloat via impressive hype, Twitter and Snap (SNAP) have failed to follow suit as each have battled weak financial results.
"I like Elon Musk. I named him the No. 1 visionary when we did our 20th anniversary for CNBC. I was so excited about him," Cramer said. "But I also knew we couldn't get [a Model 3] and that bothered me."
Click here to check out more of what Jim Cramer, JJ Kinahan, CNBC's Jon Najarian and others had to say at TheStreet's Financial Success Strategies symposium.