Can The Real Tony Starks Save Tesla??? (UPDATE)
In a post earlier this past week,
I talked about what Elon Musk aka The Real Tony Sparks was up against:
Production car scaling issues, specifically the Model 3.
Car crashing lawsuits.
The EV competition such as Volvo, Porsche, Jaguar, etc.
Key company executives leaving the company.
But I also talked about how the stock has been on a tear since the June 5 Annual Shareholder meeting and that my target was $365. Well, that target was two days later, an increase of 7% in 2 days. I would like to discuss where I see the stock price heading next.
During the Shareholder meeting, Elon Musk said there were multiple Model 3 production lines, but the general assembly line for the Model 3 still remains a constraint. He later said, the company has two general assembly lines for the Model 3 and the company is building another assembly line that will be much faster than the previous two. For this reason he’s confident about achieving a Model 3 production rate of 5,000 per week.
If that wasn’t enough, Elon Musk is backing his statement up with cash. Musk bought an additional 72,500 shares between June 12th and June 13th at an average price of $345.20.
Thus, I think there is more upside, based on the hype, sentiment and momentum, so my next target is the daily supply zone at $378.
If order for Tesla to make new all-time highs, I think they have to meet the Model 3 production /week projections. Tesla is a technology company that produces cars, but the valuation is really ridiculous. The chart below is two years ago, but still relevant today. The valuation is more than 6X the automotive industry.
So if Elon is selling more “wolf tickets,” the short sellers will only add to their positions and exacerbate the price selling off where prices will fall back down to the sub $300 level.
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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