"I also think that the news flow on this could start to change," he said, "where people start to want Tesla's model, particularly in Arizona and other places."
Shares of Tesla plummeted 3.81 percent, closing at $220.17, along with other momentum stocks such as the iShares Nasdaq Biotechnology exchange-traded fund. Those shares fell 2.76 percent to end the day at $239.23.
Kelly said that it was time to look at some of the weakened momentum stocks because the U.S. bond and copper markets didn't confirm the weakness, and he also pointed to strong China PMI numbers overnight.
(Read more: Biogen Idec CEO on company's pipeline)
"This wasn't a broad-based selloff," he said. "This was in some of those high-flying names, and they're names that I got into because I thought they would move more than the market. I was right, just not on the direction."
Tim Seymour of EmergingMoney.com also pointed to solid Chinese economic numbers, saying that a pullback in a few momentum stocks was "not a reason to run for the hills."
Karen Finerman of Metropolitan Capital Advisors, who was long IBB and looking to add to her XBI position, said that biotech was "an interesting trade."
But, she added, it wasn't quite time to buy.
"It's getting close, I think," Finerman said.
StockMonster's Guy Adami said that he didn't see a bubble in biotech, despite a tough day for the sector.
"Celgene might be very interesting right here," he said, citing the company's strong balance sheet and "ground-breaking drugs."
Celgene was down 2.02 percent, closing at $141.48 per share.
Karen Finerman is long BAC, JPM, GOOG, M, long call spreads C, she is short SPY, her firm is long AAPL, BAC, C, JPM, GOOG, M, GM, her firm is short SPY, IWM.
Guy Adami is long C, GS, INTC, MSFT, AGU, NUE, BTU.
Guy's wife, Linda Snow, works at Merck.
Brian Kelly is long CSCO , TWTR , FEYE , TSLA , MSFT , FB , CNX , CLF.
Brian bought TWTR , FEYE , TSLA on Monday.
—By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.