Tesla shares are in freefall — Here's what experts are saying about the stock

Tesla shares plunged by double digits on Friday for its worst session since November 2013 after the SEC sued CEO Elon Musk for fraud. Here's what five experts had to say about the stock and the controversial CEO:

  • "I don't think it's a long, I think it's a difficult short," noted short seller Andrew Left of Citron Research said. "I'm surprised that shareholders are shocked that he's getting charged, of course he was going to get charged by the SEC," he added.
  • "I'd say [there's a] greater than 50 percent [chance], that [Musk] gets removed. But I also want to stress that that is in my book, actually, a positive outcome as crazy as that is. I think his role is best as a product visionary," Loup Ventures founder Gene Munster explained.
  • Gabe Hoffman, owner and general partner of Accipter Capital Management thinks the moment Musk is out as CEO of Tesla, it is "no longer a cult stock of Elon Musk's hopes, dreams and lies. You have to actually value Tesla as a business..[and] I believe the financials show you that Tesla is a very troubled business on the precipice of financial collapse."
  • "Certainly in the short-term, the stock is going to take a hit," said Rebecca Lindland, executive analyst at Kelley Blue Book. "But it may not be as low as people expect as people come in and buy, and it could be that in the long-term the company is fine."
  • "Either way you cut it, the valuation is absurd, and the stock has been going up primarily because of Mr. Musk's brand and vision," stated Needham analyst Rajvindra Gill.

Bottom line: Wall Street analysts expect a bump road for Tesla as the fate of its CEO and founder hang in the balance.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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