Sell the News!
On Friday, Tesla stock went up 6%. Everyone was expecting good delivery numbers.
Then on Monday, the Q1 numbers were confirmed. Tesla deliveries of 423k beat Wall Street estimates of 421k. And guess what, the stock price dropped.
This is classic "Buy the rumor, Sell the News".
The analysts are now worried about margins after Tesla cut vehicle prices by up to 20% over Q1. We have to wait till Q2 earnings (estimated 19 Apr) to find out if material and operational costs can compensate the price reduction.
Not all is gloomy. Look at the first plot and you see Tesla still leading the EV companies in terms of vehicle delivery. $BYD Co., Ltd.(BYDDF)$ the next closest competitor had a drop in vehicle delivery in Q1.
Tesla Price Action
It's in a consolidation phase for about a month. Currently, stock price is at 194.77.
The 50 day MA should provide some support, if price weakens in the next few days. The 50MA is now at 188.73.
180 and 170 should provide further support, if 50MA support breaks. I don't expect 170 to be broken, unless there is major bad news like product delay e.g. cyber truck.
If overall market is bullish, we can expect break out >215 after Q2 earnings are done.
There has been recent hype about cybertruck. Recently, a cyber vault product which is an integrated charging system was released, but only to the Chinese market. We also had some test drive videos of cybertruck on social media. That creates a lot of positive energy for the stock.
Ultimately, I'm hoping for a reasonably good Q2 for Tesla. Stock price should hold on to 200 as a very strong support soon, once it's PE drops and uptrend continues.
@TigerStars @MillionaireTiger @CaptainTiger @Tiger_chat
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