To The Moon

While headlines highlighting $Tesla Motors(TSLA)$  ’s declining market share in China might be cause for concern for some investors, I see this as a temporary blip on the radar for a company with a long runway for growth.

It's important to acknowledge the dominance of $BYD Co., Ltd.(BYDDY)$ in the Chinese NEV market. $BYD COMPANY(01211)$ is a strong competitor, particularly in the PHEV segment, which Tesla doesn't currently cater to. This factor likely plays a significant role in Tesla's declining market share within China. However, this doesn't translate to a universal weakness for Tesla. They continue to be a global leader in the pure BEV market, and their brand recognition remains strong.

The bigger picture in China's NEV market is positive. Despite a slight dip from March, NEV retail sales are still up significantly year-over-year. This indicates a growing market for electric vehicles, which bodes well for Tesla in the long run. As Tesla ramps up production at their Shanghai factory and caters to local demand more consistently throughout the quarter, we might see their market share rebound.

TSLA Daily Chart

From a technical analysis standpoint, the falling wedge pattern on the daily chart is a bullish indicator. If the price breaks above $173 again today, it could signal a reversal of the recent downtrend. I'm keeping a close eye on this, and if it materializes, I'm ready to enter a trade with a stop-loss set at the daily low of May 10th.

The upcoming shareholder meeting on June 13th could be a significant catalyst for Tesla. While the controversy surrounding Elon Musk's pay package is a point of discussion, the potential move to re-incorporate in Texas could have long-term strategic benefits for the company. The outcome of the shareholder vote could significantly impact Tesla's direction, and a positive outcome could boost investor confidence.

Tesla undoubtedly faces challenges, including managing their Supercharger network and potential headwinds in the Chinese market. However, their brand recognition, focus on innovation, and the overall growth of the electric vehicle market globally make me confident in their long-term prospects. The current price dip might be a good entry point for bullish traders like myself, especially if the technical indicators signal a breakout. I'm keeping a close eye on the price action and the upcoming shareholder meeting, and I'm ready to capitalize on any opportunities that arise.

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Disclaimer: This is not financial advice. Please do your own research before making any investment decisions.

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