With shares of Tesla Motors rising after the electric automaker's CEO hinted at introducing new technology next week, two pros disagreed over whether the stock was overvalued or not.
"Elon Musk is a visionary leader. I think this is a transformative company. But they'd have to sell half a million cars a year within the next seven or eight years, up from a current 35,000, to even trade at a healthy premium to automobiles," Zachary Karabell, head of global strategy at Envestnet, said in an interview Friday with CNBC's "Closing Bell."
However, Colin Rusch, senior analyst at Northland Capital Markets, thinks there's another 500 to 700 basis points of margin growth just on Tesla's core product offering.
"We think these guys can potentially reach 40 percent gross margins, so the earnings trajectory on this stock is well beyond what must people are thinking about as they grow up to that 50,000 car level over the next four to five years," he said.