Hanboy
04-23

The stock is holding up well despite the negative news flow. All the bad news surrounding the company (price cuts, intensifying competitive pressure, product recalls etc) is already out in the market and should be priced in. Watch out for a sharp rebound in the stock as the news get less negative and the shorts start to cover!

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Comments

  • CashCity
    04-23
    CashCity

    Why would shorts cover so early? Tesla is a constant disappointment. Don't be surprised if it goes below $120 with layoffs and price cuts everywhere

    • CashCityReplyHanboy: 
      I see your point but I have to emphasise that holding on to a short term gain will lead to long term pain. good luck
    • Hanboy: 
      I agree with your view that the company faces mulitple challenges ahead, but we need to make a differentiation between the company and its share price. My view is based on the fact that the shares have been oversold and highly shorted, hence it presents a great short term trading opportunity at around the 140 levels.
    • CashCityReplyHanboy: 

      "accelerating the launch of cheaper EV" is not good news, when they have cybertruck/robotaxi to deal with. All in all, TSLA is a messy company bound to crash to double digits

    • CashCityReplyHanboy: 

      You're missing the entire point. The company is losing money, the CEO fails to deliver what he always promises. He ignored questions during the conference call and diverted attention away from the Model 2. There are no good news. If you listened to the call you'd know.

    • Hanboy: 
      It’s about the news getting less negative (for example accelerating the launch of cheaper cars to compete with rivals) that will trigger shorts to cover, eapecially given how much the stock has fallen…
  • Yaomao
    04-24
    Yaomao
    Wah, your content is really insightful leh!
    • Hanboy: 
      Thanks, happy to share!
  • Dr Rck
    04-25
    Dr Rck
    Yes strange right, even for PMI is below 50, which should be contraction but market is going up, it is suspected that the fiscal policy continues to inject into the economy like student debt forgiveness, military aids to Ukraine etc and infra spend by the US govt push up the economy but for specific sectors hence the PMI contracts while services soar; so ‘strong’ labour market but professionals are losing jobs by the thousands and thousands, while IT sectors with its AI are betting are betting it big on thr future! But overall market is volatile hence any negative news can trigger a massive pullback!
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