Feinseth Neutral On Tesla Stock, But Still Positive On The Company

• Shares of Tesla Motors Inc (NASDAQ: TSLA) were down 8 percent on Tuesday.
• The selloff was triggered by Consumer Reports' withdrawal of its recommendation on the Model S .
• Benzinga spoke with Ivan Feinseth, chief investment officer at Tigress Financial Partners.

Feinseth explained that the report actually showed most of the people like the Model S and would buy it again, adding that most owners have previously owned high-end cars, so their expectations are quite high. The problem is that people are confusing consumer data with the actual review of the car.

"They are not changing their opinion, they are just giving you a report of consumer data," he assured.

Having said this, his firm "went Neutral on the stock" because of the volatility.

Related Link: Tesla Responds To Consumer Reports Model S Story, Highlights Customer Service Rating

"I am personally not a big Consumer Reports fan," he continued. "As a consumer who's interested in a car, Consumer Reports is a good guide. But there are plenty of cars that Consumer Reports hated that people bought. There are plenty of items that they don't like and there are a lot of items they do like and rate highly that don't necessarily outsell any other items."

Feinseth continued, "I think people who are interested in this need to understand that you are betting on the future of new models, and the growth of the company."

"For the most part, the current Model S has been well received. It had very little defects or recalls or any major issue," he said. "We’re still Neutral on the stock; we are still positive on the company and the car (…) People have to drive the car, look at the car, compare to other cars, and make their own decision."

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.