Tesla….They Are Coming
At the beginning of Aug. Elon stunned Wall Street when he tweeted he was taking Tesla private valued at $420. On the company’s blog he posted the following:
As a public company, we are subject to wild swings in our stock price that can be a major distraction for everyone working at Tesla, all of whom are shareholders.
Then weeks later Elon said he and the company’s board had concluded that Tesla wouldn’t go private.
I knew the process of going private would be challenging, but it’s clear that it would be even more time-consuming and distracting than initially anticipated and the better path is for Tesla to remain public.
Then yesterday, Elon smoked weed on the "Joe Rogan Experience" podcast on Thursday.
While Elon Musk continues his shenanigans, the competition is slowly moving up the rear. I talked about the competition three months ago.
The latest company to join the competition is the Mercedes-Benz EQC is an all-electric compact crossover in all-wheel drive.
Now Goldman Sach thinks Tesla stock price is going to tank 30% in the next 6 months due to increased competition. The analyst at Goldman stated:
We see the medium-to-longer term industry backdrop as challenging for Tesla's products; this follows from an increasing number of EV launches from both traditional OEMs and other start-up competitors — at a time when the company's product cadence hits a gap," analyst David Tamberrino said in a note to clients Tuesday. "We believe the company will see pressure to its lead in EVs as competition catches up.
And now the charts are telling me that the shorts are making a strong case of potentially being right. The monthly chart tells the whole story. Price is on the verge of breaking a monthly trendline that was established at the beginning of 2016. More importantly, price is testing the monthly demand at $250 again. Because price was in this zone once before, the chart suggest price will penetrate the zone even deeper this time. However, the $250 level becomes my line in the sand. If price breaks this zone, the chart suggest price is going down to $190.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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by rollandthomas
That monthly chart looks absolutely grosssss
lol.
I hold a couple shares in my IRA and said to myself. "I should sell this right now" when it was at 375. Shoulda listened to myself LOL
Elon is one of the great minds of this generation, but his actions lately have been ill-advised., so anybody who has money behind him must re-evaluate their investment.
Strike 1 Tesla burning cash at an icredible rate in which they will eventually run out? Strike 2 other companies getting into electric cars. Strike 3 we have a looming recession and stock market crash. Looks like Tesla will be out of the game very shortly!
Yeah..strike 3 is going to be the dagger.
Tesla should be worth less. Company can't make money and has a boss who does not care about public perception of him. I wouldn't care if his companies were not subsidized by our tax money but they are.
Yeah, the valuation is crazy, but it's based on future revenue. As long as Elon is up to his shenanigans, the valuation will come down.
This may be a classic case of being a victim of their own success as expectations grow to continue innovating and growing while competitors catch up under the radar. I have been researching cars and I can tell you that a number of salespeople start with “this is the alternative to Tesla with our engineering.”. There is one brand in particular who has an awesome car coming out at a similar price point to compete...
Wow, I didn’t realize things were that tangible by competition already.
Ouch...