Diclet
03-13
$Tesla Motors(TSLA)$  


An ever burning fire?

Eventually, each continent will depend on their own line of EV. This doesn't sound promising for the U.S based company but we should not forget about the strength, resiliency and size of the U.S economy. A good example here is$Amazon.com(AMZN)$ , a company that has benefitted hugely from the size of the U.S economy. But whether that will hold true in the future is another story given how intensive competition are in the e-commerce industry. At the very least, AMZN's presence in other countries is guaranteed. 


As for TSLA, we can be sure that its days of explosive growth are over. This is evident by the rate at which TSLA has cut its prices in its overseas market. Fortunately, if each continent does own their own line of EVs, then TSLA would possess a natural moat, assuming it is able to hold its weight. 

It should be noted that vehicles are a necessity for some in a big country. The EV industry is therefore, able to represent and capture a huge range of the consumer market (low to high end). TSLA also lacks any formidable EV competitor in its home territory (I could be wrong). This means TSLA would become a blue chip. Much like MSFT, unless something drastic occurs. But then, it is not hard to imagine what the future would look like with vehicles. In other words, TSLA has possibly shown the world what the 'future' would look like and this propels other countries and organizations to invest in this industry. Therefore, competition will only increase from here on.

Lastly, we can be sure that there are interferences and governance asserted by the Central Administration over some of the key industries. There could be a plan for TSLA given how strong scientific research is in the U.S but only time will tell. 


Rockbottom blues

Technical indicators wise, it would appear that TSLA is currently trading in a range. Having suffered from a series of bad news, there doesn't appear to be anything worse that could cause another rout. As long as TSLA trades side way, then the current price range would become a bottom. Bearing in mind the strength of its home market.$Tesla Motors(TSLA)$   

Modified in.03-13
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