'Trading Nation' Traders Weigh In On Tesla

On CNBC's "Trading Nation," Delano Saporu of New Street Advisors said the backdrop is against Tesla Inc TSLA right now and one thing that could bring buyers back is looking at the valuation and making sure it makes sense.

Tesla's price-to-earnings ratio was 511 times on June 30, 2020, and right now we are getting close to that, said Delano. He expects to see more buyers as the stock approaches that mark.

JC O'Hara of MKM Partners said stocks like Tesla tend to overreact both on the upside and downside. Trends in the name have shifted as the stock dropped below the 200-day moving average and long-term uptrends. Although a short-term bounce is possible at the current price level, he thinks Tesla could drop to $450.