$Tesla Motors(TSLA)$ closed at $109 and are now down 44% in December. $Apple(AAPL)$ hit a new 52-week low. Most investors suffered recently because of the two star stocks.
Keypoints:
- Weak demand drags Apple and Tesla
- Shorts bet Tesla will fall below $100
- The good news is that Buffett and ARK bottom Apple and Tesla at the historical lows
Weak demand drags Apple and Tesla
(1) Apple
Recent weakness has come as production halts in a major iPhone plant in China contribute to a supply shortfall of Apple’s flagship product.
The latest smartphone shipment data out of China“confirm industry headwinds.”
On Tuesday, JPMorgan wrote that
iPhone supply is improving and inching slowly towards parity with demand, although it added that Apple is typically much further along in reaching parity between iPhone demand and supply at this time in the year.
(2) Tesla
Reuters reported on Tuesday,
Tesla plans to run a reduced production schedule at its Shanghai plant in January, extending the reduced output it began this month into next year, according to an internal schedule.
US recession in 2023 could have great impact on cars' demand.
Musk said on an Twitter Spaces call Thursday
he foresees the economy will be in a “serious recession” in 2023. Homes and cars will get “disproportionately impacted” by economic conditions.
Shorts bet on Tesla falling below $100 this week
3.588 million Tesla options traded on Tuesday, with puts accounting for 52.6% of the volume. Notably, there are 123,500 contracts with striking price of $100 expiring this week.
Data source: Market Chameleon
Do you plan to bottom Apple and Tesla at the historical lows?
(1) Buffett bottomed $Apple(AAPL)$ at an average price of $136.72 in June.
Back in June, Apple hit $129.
Accroding to Berkshire’s filings, Buffett bought 3.9 mln shares.
Based on data of 13F, we exrapolate Buffett’s cost price of Apple was $136.72. Apple closed at $130 yesterday.
Data from Berkshire 13F
(2) $Tesla Motors(TSLA)$'s valuation dropped to a historical low
Tesla's Forward P/E dropped below 30.
data from yahoo finance
Cathy Wood's fund bought shares of Tesla for a consecutive week. Last Tuesday, $ARK Innovation ETF(ARKK)$ bought more than 19,000 shares of Tesla stock, worth more than $2.6 million.
Will you buy the dip of Apple or Tesla?
Or will you short Tesla with $Tesla Motors Bear ETF-AXS(TSLQ)$?
Can Tesla guard $100 in 2022?
Comments
oh no. I bought both Apple and Tesla shares earlier before their drastic falls in prices. Tesla price drop is horribly worse. Wanted to sell them but the loss is too much and cant sell already.