Bullish Case For Tesla: 'Giving Elon Musk And The Company A Little More Leeway'

Tesla Motors Inc (NASDAQ: TSLA)’s stock is up over 34 percent in the last three months and according to Drew Cupps, CIO at Cupps Capital Management, it will continue moving up.

Cupps was on CNBC Wednesday to explain why he is bullish on Tesla.

Affirmation And Clarity On The Agenda

“I think this company doesn’t suffer for ambition in its agenda,” Cupps said. “So, I think, all we really need is some affirmation and clarity on the agenda that we know, which is the energy business and the Model X launching in the next probably 3 months or so.”

Giving Tesla And Musk A Little More Leeway

Cupps was asked what he exactly wants to know about the Model X. He replied, “I don’t know that I care so much exactly what the details are, but rather the affirmation, we love to hear them say that indeed they will produce the Model Xs in the third-quarter.”

He continued, “To tell you the truth, our perspective on the stock has been one giving Tesla and Musk a little more leeway than I think many do. What they have done is they have maintained a pace of advancement and a leadership that allows them to continue to penetrate this trillion and a half dollar auto industry and that’s all I need them to keep doing.”

Layer Upon Layer Of Growth

On Tesla’s current valuation, Cupps said, ”About a year from now we could start to see the details on the Gen 3. So, it’s just kind of layer upon layer of growth and that’s why we don’t want to get too cute with the valuation.”