Green Trade: Buy the Tesla Pullback?

In celebration of Earth Week, for the next several days Fast Money will be focusing on trading 'the business of green.'

And for our first trade, the Fast gang considers electric car maker, Tesla. The stock is up 13% year to date, however it’s begun to pull back more recently.

Should you buy the dip or is the sell-off a sign of weakness?

Think equity analyst Colin Rusch tells us the sell-off was generated by Abu Dhabi National Energy selling its 7% stake in the company earlier this month. "They were a pre-IPO investor who went through a portfolio review and decided to exit the position."

In other words, Ruschs doesn't see the weakness as a negative vote from the market, but rather one investor reorgnazing its holdings.

In fact, he says the resulting weakness is an opportunity for everyone else.

That's because Rusch thinks Tesla is something of an undiscovered gem that's about to capture the hearts of its constituency - affluent car buyers. The Tesla Model S sells for $49,900 and up.

“We think it’s a fantastic car, one that folks who buy premium vehicles will love to have. It handles well. It’s got great power. And it meets the range criteria for most drivers,” he says.

And he thinks the growth potential is enormous.

“The addressable market for premium cars is about 2.5 million vehicles,” Rusch tells us. “And our projection for 2013 is sales of 21,000 for Tesla. That gives them less than 1% of the market globally.”

Rusch has a buy rating on the stock and a $39 prices target.

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Trader disclosure: On Apr 16, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long CSCO; Pete Najarian AAPL ; Pete Najarian BAC CALLS; Pete Najarian C; Pete Najarian JPM CALLS; Pete Najarian MS; Pete Najarian INTC; Pete Najarian YHOO; Pete Najarian SBUX CALLS; Pete Najarian COP; Pete Najarian PEP; Pete Najarian HPQ; Pete Najarian HD CALLS; Karen Finerman is long AAPL; Karen Finerman is short AAPL CALLS; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long RIMM CALLS; Karen Finerman is long HPQ; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU

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