Despite an announcement by Tesla Motors that it would attempt to open more showrooms in China next year, now isn't the time to get on board, R.W. Baird senior analyst Ben Kallo said Thursday.
"I think demand isn't an issue at all," he said. "In the near-term, I'm more worried about how they're actually going to supply the cars and how they're ramping up production."
Shares of Tesla closed at $155.50, up 2.7 percent, and continued to climb in after-hours trading.
Kallo has a "neutral" rating on the stock and a $187 price target.
On CNBC's "Fast Money," Kallo said that Tesla shares would head significantly lower before breaking to the upside.
"I think there's some bumps in the road for Tesla," he said. "I think we'll probably see lower lows than we saw."
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Kallo said that he expected Tesla shares to move "closer to $100 before $200."
StockMonster's Guy Adami said that he saw more volatility in the stock, which was a no-touch at the moment.
"I don't agree that momentum is back. I think the choppiness now is back," he said. "I think you take profits here, look for a pull-back. If you want to buy a breakout, it's above $165."
Kallo also said that he was a believer in the solar-power industry over Tesla.
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"I'd rather be in solar," he said. "This year, I think is going to be one of the strongest years we have in the solar industry."
"They have room to go higher," he said. "If we get the Elon Musk factor going, I'd rather be in SolarCity than Tesla."
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Gordon Johnson of Axiom Capital said that his top solar trade for 2014 was shorting Trina Solar.
"I think that China's going to be very weak. We think that the market is going to be tough," he said. "Module prices are flat. Poly silicone prices are up, which means margins are going to come down. We think the stocks are in for some trouble next year."