To The Moon

$Tesla Motors(TSLA)$ dumping in after hours after reporting an earnings miss.

Tesla released its financial report for the fourth quarter and full year of 2023 on January 24th, after market close.

• The data indicates that Tesla experienced its first annual profit decline since 2017, with a significant 40% drop in profits for the fourth quarter.

• Both revenue and earnings per share fell below expectations.

• Additionally, the company issued a warning stating that the growth in production, deliveries, and shipments will slow down in 2024,

• and they did not disclose delivery targets for 2024.

In response to this news, $Tesla Motors(TSLA)$ 's stock fell more than 5% in after-hours trading.

Once a stock of faith, it has now fallen out of the top rankings, even out of the Mag 7...

Many Tesla believers are asking, can we buy the dip now? At what price level can we consider bottom fishing? $180? or $150?

Tesla CEO Elon Musk, who used to be focused on boosting the stock, now seems less interested. His recent focus is on securing voting rights (for 25% ownership of Tesla). If the stock price falls, the board members may recognize his importance. Therefore, Musk may not be very motivated to support the stock price in the short term.

Elon Musk's latest response: "This is my concern about voting control of Tesla. If there is a serious technical issue, money doesn't matter."

Without at least 25% of Tesla's voting control (almost twice his current ownership), Musk will find it challenging to continue developing Tesla as a leader in the fields of artificial intelligence and robotics.

(Although Musk remains the largest shareholder in Tesla, with a stake close to 13%, in 2022, he sold stocks worth nearly $40 billion to fund the acquisition of Twitter (now renamed X).

After selling a significant amount of Tesla stocks to acquire Twitter(X platform), Musk pressured Tesla's board to arrange another substantial stock reward for him. However, he was informed that this was not possible after Tesla's initial public offering.）

However, this demand is not favored by investors, so the $Tesla Motors(TSLA)$ price is temporarily not optimistic.

From a technical analysis perspective, after the announcement of the financial data in the previous three quarters, Tesla experienced a certain degree of decline. This time, the financial data is even more pessimistic, and the stock price may need to drop by at least 10%. Only when it experiences a significant volume drop, there will be room for a rebound.

Therefore, in the short term, the $Tesla Motors(TSLA)$ price still needs to be observed. It's not advisable to rush into bottom fishing.

Looking ahead, what can temporarily support $Tesla Motors(TSLA)$'s stock price is the next-generation platform expected to begin production next year. However, before the release of the next-generation platform, the profit margin is not expected to be good.

So, it depends on when investors will regain confidence in potential news about the next-generation platform and when they will start speculating on this news.

Musk's Performance:

Since Tesla's board announced Musk's compensation plan in January 2018, the company's market value has increased more than 11 times, reaching $695.8 billion.

On the other hand, before the acquisition of Twitter, the company's market value had previously exceeded $1.2 trillion.