The electric automaker is slated to unveil its highly anticipated Model 3 Thursday evening. People camped out as early as Tuesday outside of Tesla dealerships in hopes of being among the first to pre-order the new vehicle. On Thursday, Apple launched new products outside of its typical cycle, but to less fanfare.
The traders argued whether this product release hype will be a successful predictor of Tesla's stock performance. Trader Tim Seymour had his doubts.
"I think this is the time that Tesla really has to figure out, are they going for the luxury, high-end, or are they really trying to be the masses; and I'm not sure they get the masses," he said.
Trader Guy Adami agreed that this will be a decisive moment for Tesla. He said that with the stock now trading around $230 where it was before it cratered in early February, the success or failure of the Model 3 will greatly influence the share price.
Trader Steve Grasso said that of the two names, he would rather hold Apple because Tesla shares are only running on fanfare.
"It's a hype stock. It's out of momentum, and they can't produce one car, let alone three cars," he said, in reference to the company's low delivery volumes.
Trader David Seaburg said that it depends on the time frame. He would rather own Apple in the near-term because of Tesla's current valuation, but he still believes in the electric automaker in the long term.
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.
Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc.
Steve is Long AAPL, BA, CC, DD, DIS, DECK, EVGN, KBH, MJNA, MU, OLN, PFE, PHM, T, TWTR, GDX firm is long IBM, MCD, CXO, OXY, BP, CVX, RIG kids own EFA, EFG, EWJ, IJR, SPY
Guy Adami is long CELG, EXAS, GDX, INTC, Guy Adami's wife, Linda Snow, works at Merck.