Investment Pro On Tesla: Nobody Else Does What They Do, And That's Huge

Adam Sarhan was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Sarhan is the founder and CEO of Sarhan Capital, an investment advisory firm and was a guest on #PreMarket Prep on Tuesday to discuss a wide variety of stocks, including Tesla Motors Inc (NASDAQ: TSLA) ahead of its second-quarter results, which are scheduled to be released after Wednesday's market close.

Sarhan said that shares of Tesla have had a "very big run" from its lows in March and April. However, shares are now "digesting" the large move but with some added volatility, which is normal for a stock of its size. Nevertheless, the investment pro said that Tesla is an "innovative" and "great company" making it a leader in the space.

"Nobody else does what they do," Sarhan said. "And that's huge."

Related Link: Tesla's Q2 Results Are 'Only Limited By Supply'

Sarhan continued that Tesla has been around for years and was able to achieve success, while traditional automobile companies have failed to "capture" the electronic car audience. He pointed out that General Motors Company (NYSE: GM) introduced its electric Cadillac ELR vehicle which failed to impact the market.

Looking forward to the quarterly print, Sarhan suggested that one (or even several) bad quarter won't alter the long-term story. So long as Tesla remains a "leader in their space" and introduce a lower cost car model to "get an electric car in every driveway," Tesla investors should do just fine.

The stock closed Tuesday at $266.28. Shares are up 19 percent year-to-date.

Disclosure: Sarhan said he is long Tesla shares.