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Traders: How to play Einhorn, Chanos bets

Top stock pickers Jim Chanos and David Einhorn outlined their best bets Wednesday, and some "Fast Money" traders agreed with their assessments of certain stocks.

Chanos, the noted short-seller of Kynikos Associates, told CNBC he is still betting against shares of Tesla Motors, Alibaba and Valeant Pharmaceuticals, among others. He added he has questions about the profitability of Tesla, the electric automaker.

Tesla posted quarterly results Wednesday and reported a first-quarter loss of 57 cents per share, which was wider than the shortfall in the prior-year period. However, shares rose as the company gave a bullish outlook for production, boosted by strong demand for its upcoming Model 3 car.

However, trader Tim Seymour warned that he is "skeptical" of Tesla's ability to meet its expectations.

Greenlight Capital's Einhorn, meanwhile, made the case for General Motors and against Caterpillar at the Sohn Investment Conference in New York.

He touted GM's valuation and the company's ability to cut costs and restructure. Seymour agreed the stock is not a bad bet "even if you think its best days are behind it."

Einhorn also contended that Caterpillar is hurt by mining volatility and slowing commodities consumption in China. Trader Brian Kelly said Caterpillar makes sense as a trade on the short side.

He noted that Freeport-McMoRan could also face difficulties if Einhorn's thesis proves correct.

Disclosures:

Karen Finerman

Karen is long BAC, C, DRII, DRII calls, FB, FL, GOOG, GOOGL, JPM, LYV, KORS, M, SEDG, SPY puts, URI. Her firm is long ANTM, AAPL, BAC, C, C calls, DRII, DRII calls, FB, 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, SLV, US Dollar; he is short Australian Dollar, BLK, CS, DB, Euro, EWA, EWH, FRC, Hong Kong Dollar, UBS, Yuan, 5-Year Note Futures

PETE NAJARIAN

Long AAPL, BAC, BMY, CSCO, DIS, DISCA, GE, KMI, KMI.A, KO, LUX, MRK, PEP, PFE, SAVE, VIAB, ZIOP Long Calls: AAL, AGN, AKS, AMJ, COP, EGO, EWZ, HAIN, HBAN, JD, KATE, KBH, KMI, LLY, MSFT, MT, NLNK, SBUX, SLV, SPG, TCK, UAL, YHOO Long Puts: FCX, NOV, PBR, VLO

TIM SEYMOUR

Tim Seymour is long AAPL, AVP, BAC, BBRY, CLF, DO, EDC, EWZ, F, FCX, FXI, GM, GOOGL, GRMN, GE, GLNCY, INTC, LQD, MCD, MPEL, NKE, RACE, RAI, RL, SINA, T, TWTR, UA, VALE, VZ, XOM. Tim's firm is long BABA, BIDU, CLF, EWZ, F, HD, KO, MCD, MPEL, NKE, PEP, PF, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, YHOO, short HYG, IWM, WYNN