Tesla - going for $200?
What a difference one week could make! I posted an article about Tesla on 23/4 prior to the result announcement.
I mentioned that it was hovering near 143 with no support thereafter. I also mentioned I expect to see the price goes all the way to around 101 to test the next support.
However, I also mentioned that I expect rebound to take place given its oversold position.
Rebound it did with Elon Musk's flip out session! It continues to roar pre-market today towards $200! From the chart's perspective, on its way up, it managed to move above 50 days MA. This is a good initial sign, as the quick rebound has probably surprised quite a number of shorts, forcing some to unwind their positions.
However, due to the quick run-up, it has also left a gap between 146 and 158. The second quick jump at pre-market if maintained for the rest of today would like create a second gap between 168 and 189. At the same time, it covers the previous rundown gap around 184-186. If Tesla shares price crosses 200, the next resistance line is around 205. If it can take out 205, the downtrend might indeed be reversing.
Having said that, it is too early to call the end of Tesla downtrend. The two big gaps formation have to be filled sooner or later. With such a hurry jump, I am inclined to think that the gaps would be filled shortly and downtrend will continue. However, I will only re-evaluate this after the share price has crossed or failed to cross 205. The next few days is likely to be key. Being a chartist, I understand that trend is my friend and who am I to fight it? I just read it as it is...
Ok, enough of trend analysis or the boring part. Now, the quasi-fun part. I hope those Tesla or Elon Musk's fans don't get offended. Just wanted to make sense of what happened to Tesla shares price in a not-too-boring way...
Prior to result announcement, Elon Musk said cheaper Tesla project is out and cheering on by none other than Cathie Wood, he has swop the project by Robo-taxi!
Next, to his horror, the share price just kept going down! After a smoke of his marijuana,
he has a brainwave! Whoops! Pulling the rabbit out of the hat 🥳 🤠,
we get the cheaper Tesla back to go with a "nothing-to-see-here" quarter result announcement.
You know what? Robo-taxi, as I mentioned in my last update, is still going to happen.
However, the regulatory and technology challenges are not going to go away overnight. It takes time and both Elon Musk and Tesla don't have the luxury of time now!
Today, Elon Musk could do what he likes to do, says what he likes to say, buy what he likes to buy (think Twitter, US President, anyone?). It all boils down to the fortune from Tesla! Tesla has basically becomes his personal bank! If he needs money, he just asks the board to hand over more free options!
This is going to continue until he could convert his next project, X into his second personal bank! The one supercharged with crypto!
Elon Musk quick visit to China is not surprising. Given recent negative foreign investment relationships, Chinese government willingness to entertain him is also not surprising. The surprising part comes next! Tesla is collaborating with Baidu to move its FSD forward.
Given the current US-China relationship,
China government is showing the world 🌎 that it is the friendly nation and standing on moral high ground. However, I am not too sure if US government will take this collaboration kindly. One thing to be sure, US government cannot do anything since Tesla-Baidu's deal is only Chinese centric... For now! 😁 Only time will tell how this will pent out...
Smoke waves could only take one so far... Anyway, it is only one week... It is early days... Tesla still needs to deliver. If the end result is a Robo-taxi, it just doesn't make sense for Elon Musk's believers to buy Tesla now, only to replace it with the taxi 🚖 concept a couple of years down the road... Unless of course, this time is going to be a long time down the road...
Just my 2 cents! Have fun... While it lasts...
@TigerStars @CaptainTiger @TigerWire Hopefully you can share it so that more people can access the contents to stimulate thoughts and discussion! Thanks 🙏🏻!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
