Tesla's stock desperately needs a recharge.
Shares of the electric automaker made a new 52-week low on Thursday, extending their losses in early trading after a Citigroup analyst issued the second bearish call of the week on the stock. Shares reversed shortly after hitting that low, rising 1% after CEO Elon Musk told employees that the company was on track to exceed the record for quarterly deliveries it set in the fourth quarter of 2018.
But some, like Blue Line Futures President Bill Baruch, have their eyes on the contrarian bet.
"Right now, you're getting a flush. This typically happens when there are super bearish calls out there on the Street. Let this thing flush," he said Wednesday on CNBC's "Trading Nation." "There is going to be a value buy at some point."
Baruch pointed to a long-term trend line providing support around the $180 level. With the stock's average directional index, an indicator that measures the power of stock trends, signaling more room for downside, Baruch advised letting the sell-off play out a bit longer before jumping in.
He also noted that the relative strength index, which tracks momentum, is reaching oversold levels that are typically seen as a sign of an upcoming bounce.
"Let this RSI get really low," Baruch said. "Let the ADX show a stronger trend. Let it get down to $180. At that point, I think you can either buy some calls with maybe 30 or 60 days of time, or just the underlying stock, and look for a value buy and a short-term trading opportunity."
John Petrides, managing director and portfolio manager at Point View Wealth Management, wasn't nearly as optimistic.
"As a value manager, I don't see value in the company yet," he said in the same "Trading Nation" interview. "The valuations are still too high. You have a company burning through cash flow, they have balance sheet issues, you have a wildcard of a CEO, you have board members not seeking reelection."
While many of these problems have persisted for some time, Petrides suggested that the latest headlines have brought them to the fore.
"You finally have the shine … coming off the car," he said. "And that's what you're seeing happening in the stock right now, and it's still unattractive for my taste."