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How to trade Tesla ahead of Model 3 launch

As Tesla Motors prepares to unveil its cheaper car, "Fast Money" traders cannot see past the company's stock price.

The electric automaker on Thursday night will unveil the Model 3. It starts at $35,000 and marks the company's first step into the mass market.

Though some touted Tesla's long-term prospects, traders contended they would avoid the company's shares at their current price.

"I think it's really impossible to justify this valuation," said trader Tim Seymour.

Tesla showroom
Scott Mlyn | CNBC

Despite strong sales growth, Tesla posted an adjusted loss of 87 cents per share in the fourth quarter. Its stock has climbed 19 percent in the past year and closed Wednesday at about $227 per share.

Trader Brian Kelly said he would "sell the news" after the stock's run.

Trader David Seaburg said he "loved" Tesla's technology and vehicles and saw upside for its stock long term. But he noted he could not justify its current price.

"At these levels, I'm a seller," he said.

Seymour added that he preferred Ferrari shares in the auto space.

Disclosures:

Tim Seymour

Tim Seymour is long AAPL, AVP, BAC, BBRY, DO, EDC, EWZ, F, FCX, GM, GOOGL, INTC, NKE, SINA, T, TWTR, VALE, VZ, XOM. Tim's firm is long BABA, BIDU, CLF, KO, MCD, MPEL, PEP, PF, SAVE, SBUX, VALE, WMT,YHOO, short HYG, IWM.

David Seaburg

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc

Karen Finerman

Karen is long BAC, C, FL, GOOG, GOOGL, JPM, LYV, KORS, M, SEDG, SPY puts, URI. Her firm is long ANTM, AAPL, BAC, BOKF, C, C calls, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, M, MOH, NRF, PLCE, SPY puts, URI, her firm is short IWM, MDY. Karen Finerman is on the board of GrafTech International.

Brian Kelly

Brian Kelly is long BBRY, Bitcoin, GLD, GLD puts, SH, SLV, TLT, US Dollar, UUP, Yen; he is short Aussie Dollar, BLK, British Pound, CS, DB, Euro, EWH, FRC, Hong Kong Dollar, UBS, SPY, Yuan, 5-Year Note Futures