Has Tesla Lost The Cool Factor? Why This Investor Prefers Rivian Stock

Has Tesla Lost The Cool Factor? Why This Investor Prefers Rivian Stock

Despite the wild swings in Tesla Inc TSLA shares year-to-date, Grasso Global CEO Steve Grasso has pointed out that the stock is actually less volatile than its EV competitors.

"Tesla is actually seen as the stable EV company," Grasso said Thursday on CNBC's "Power Lunch."

Investors who already own the stock can stick with it at current levels, but if it falls below $971 per share, Grasso recommends selling it. The $971 level marks the 50% retracement from Tesla's recent high.

"If it breaks below that, I would think about liquidating your position," Grasso said.

See Also: Nancy Pelosi Exercises $500 Tesla Calls: Here Are The Details

Here's Why: Grasso believes there is more upside potential in Rivian Automotive Inc RIVN stock.

"I like Rivian because I think they're really gaining a lot of mental market share and I think one day it's going to be something that people really want to jump into," he said.

"People around the neighborhood want to buy a Rivian, they want something new. They don't want a Tesla anymore, they want something new."

Grasso said Tesla is being viewed more and more like Ford Motor Co F or General Motors Co GM in terms of being more stable and more investible, while Rivian has taken over as the high-risk play.

TSLA, RIVN Price Action: Tesla closed Thursday up 1.48% at $1,013.92 and Rivian closed up 6.08% at $48.66, according to data from Benzinga Pro.

Photos: courtesy of Tesla and Rivian.

Posted In: CNBCSteve GrassoLong IdeasTechnicalsMediaTrading Ideas

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