Tesla Motors: 'Hard To Play' And 'Hard To Buy'

Though Tesla Motors Inc TSLA reported better than expected second-quarter numbers post market closing on Wednesday, its shares were hammered on Thursday on concerns that the company won't be able to meet its full year vehicle delivery target.

Ivan Feinseth, TIgress Financial Partners, was on CNBC recently to discuss how investors' expectations are weighing down on the stock.

Hard To Play

"You have to look Tesla in the perspective that it is an emerging growth company with an emerging product," Feinseth began. "Now we like the car, we love the car, we love the CEO. However, you are going to have manufacturing issues and you have to have all the suppliers, all lined up to meet the production goals and the concern is that, is it somewhat driven by the suppliers and the production capacity or is it driven by demand."

"The new Model X that's coming out, I think, is an incredible card. There's a huge demand for it, they have taken over 15,000 deposits. But it was supposed to come out in the first-quarter and it's now it's not coming out to the last quarter."

He continued, "So, they have a great product, but from a standpoint as an investor it's hard to play the stock like this because of the valuation can exceed expectations and if the expectations aren't 100 percent, the stock can drop the way it is today."

Hard To Buy

On Tesla's current valuation, Feinseth said, "Well, I think it's still hard to buy the stock at current levels. I think that you want to see all the processes lined up."