The ” Fast Money ” traders weighed in on which stocks to buy as the Dow Jones industrial average neared 20,000 on Friday — coming within 1 point of the psychologically-significant milestone.
Trader Brian Kelly shocked the desk by revealing he bought more Tesla shares on Friday. The reasoning behind the trade, he said, is that Tesla isn’t a “car company. ”
Kelly explained that Tesla represents a “bigger-picture play” where the stock will benefit from the “decarbonization” of the electric grid—or the shifting away from the use of fossil fuels to generate electricity. Trader Guy Adami agreed that Tesla’s stock has “a lot of room to the upside. ”
Shareholders from Tesla and SolarCity both approved a merger between the two companies, with Tesla paying $2.6 billion to acquire the struggling solar energy company. At the time, Tesla said it expects SolarCity to add more than half a billion dollars in cash to Tesla’s balance sheet over the next three years.
Trader Steve Grasso said he hasn’t been picking individual stocks lately, instead deciding to invest in broad ETFs. If pressed to pick an individual stock, he said Amazon is an attractive choice because of its upcoming earnings release on Feb. 2.