highhand
2022-10-07

$Tesla Motors(TSLA)$

From Buy Buy to Buy Buy Buy!

*Credit Rating News*

Tesla's long term credit rating has been upgraded from BB+ to BBB by S&P500. That's like Junk to Investment Grade!

Why this matters? It basically allows more influx of investment funds for Tesla stock because certain pension funds, hedge funds, etc... require a stock to be investment grade before being able to invest in.

Many are wondering is this a time to buy Tesla? In the last few days, TSLA has fallen from grace to $238. There seems to be some support at this level. Looking at the chart, other support levels would be 225, 213 and mother of all supports, 200!

RSI doesn't indicate oversold yet (RSI14 <30 means oversold), so there might be more downside. Earnings happen on 19 Oct, and that will be a biggy. Even with vehicle delivery Q3 miss, Tesla still on track to grow almost 50% this year. Why does missing a few thousand cars matter?


*Bird News*

Why the doom and gloom? It must be the bird Twitter.

Now here's a rumor. 

-Trial has been delayed till 28 Oct for Elon to close deal with Twitter.

-Twitter purchase is dependent on Elon to be able to secure loan i.e. debt financing.

-If Elon has problems with debt financing from either the banks or equity investors, would that allow him to back out and pay a 1 billion termination fee? Stay tuned to find out!


*Semi News*

Tesla is delivering the Semis to Pepsi in Dec, as noted in Elon's tweet. Semis are heavy duty trucks used in transportation, logistics. Each cost $150-200k, and though volume is not as high as cars, it does still add to revenue when it ramps. Expected a few billions in revenue in the next few years. 

Last but not least.

Remember don't use PE ratio too much to for a growth company's valuation. That's for mature companies.

Tesla is far from being a mature company with a slew of products coming in the next 5-10 years. If you believe in the company, get in at support levels because where Elon's going, there's no turning back now. [Cool] 

@TigerStars@Daily_Discussion@Tiger_chat@MillionaireTiger

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Comments

  • liewtc60
    2022-10-08
    liewtc60
    BBB' ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity. Investment grade rating allows Tesla to easily borrow money from the debt market or financial institutions at a lower interest rate.
    • highhand: 
      credit rating upgrade is like a spring for future upside. not now, in these dire market conditions.
  • Ericdao
    2022-10-08
    Ericdao
    It's not the revenue, it's the profit from each truck. Unfortunately, Elon just like to play with fire. He's likely to pay penalty for twitter. Financing will not be easy for him now
    • highhand: 
      time to bring Tesla down for "value" investors...
  • hh488
    2022-10-08
    hh488
    What is Tesla longer term support price?
    • highhand: 
      200 major support. anything below is anybody's guess.
      186 looks like got some support and next major one is 140.
  • Nanamoney
    2022-10-07
    Nanamoney

    What will be the next direction ? 

    • highhand: 
      weak and down for short term.
  • Braight
    2022-10-08
    Braight
    Still down. Anything else good to announce?
    • BraightReplyhighhand: 
      [OK]
    • highhand: 
      nope, need to wait for more Twitter news to stop uncertainty. maybe Q3 earnings will spring a surprise.
  • LMSunshine
    2022-10-09
    LMSunshine
    Great post! Thanks🤗
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