That's the beauty of TA. All I need to know is shown on the chart. The rest of the story is just that, a story. TSLA is a stock I follow just because we have had a discussion and you seemed very passionate about the stock. Same with Bitcoin, a hell of a story but so far it has been a disappointment investment wise. I can't argue that if I had bought at the bottom I would have made pretty good money. My style is more to let a stock start to run and jump on the bandwagon and so far TSLA hasn't shown the kind of strength I like to speculate in. The problem I see is that TSLA has a lot of stock owners who are underwater and have been for over a couple years. What are the chances they'll bail if they get close to break even. Too much overhead resistance to make it a safe speculation. I'm too old to tie up my capital for any length of time. My strategy; Buy stocks that go up and don't hold losers in your portfolio.
Glad you finally come around to this because last year (or the year before?) your point was that Tesla's sales were minuscule. Guess what, Tesla still has higher margins than the competition, EV and ICE.
I respect your trading method. For me TA is like having your nose on the steering wheel, it's good to help react to in your face situations, but doesn't provide the big picture that I need for my investments. Regardless, as exemplified by Sekiyo's graph, if you're stuck looking at TSLA high of 2 years ago, it looks to me as a solid long term investment (yes, long term is 5 years for an old gizzard like me) to recover to it's high and beyond within that time frame. Also, since the January 100 bottom, the stock has been a traders dream, with predictable volatility for both long and short.
But it is competition for Tesla. Every BMW, Audi, VW EV that is sold is one less for Tesla. Rumor has it that Tesla is going to spend money on advertising. Something that hasn't been necessary until now. Fundamentals aside TSLA has to start making higher highs for me to be interested.
Read much. Margins OVER sales and revenues and growth rates - minuscule or monster sales mean d... And margins are not rising, any longer. The opposite. THAT is what Wall Street focuses on. Fanboi amateurs focus how big they are to their peers, who BTW are not priced to perfection like TSLA still is.
Not a rumor. Fact. To go with cutting prices every other month it seems. Just like all the other auto companies in the world dealing with supply and demand economics. Fanbois say not us. We will rule the world and grow to the stars forever and ever. Tesla to start advertising in major reversal for brand Tesla CEO Elon Musk has avoided traditional advertising campaigns in the past, but increased competition in the electric vehicles market may have forced his hand. By Josh Stephenson 17 May 2023 Tesla is set to “try a little advertising”, CEO Elon Musk has said, signalling a major shift from a brand that has previously eschewed ads. The electric car company has historically favoured the advocacy of owners and fans to promote its brand and has not run paid for traditional campaigns in its twenty year history. Musk has gone as far as to declare he ‘hates advertising’ when pushed as to why the company has never pursued it in the past. But at Tesla’s annual shareholder meeting on Tuesday, Musk changed course and says the company will try an advertising strategy in the near future and “see how it goes” after discovering its worth through owning Twitter, reports The Verge. “Twitter is highly dependent on advertising, so, here I am, never used advertising really before, and now have a company that’s highly dependent on advertising,” he said in response to a question from an investor. “So I guess I should say advertising is awesome, everyone should do it!” It’s unclear what an advertising campaign for Tesla would look like but in a follow-up interview with CNBC he said that if advertising is informative and entertaining “it can start to approach content” and that he would use advertising to highlight lesser-known features in the company’s vehicles, adding that any campaign would need to be “informative” and “aesthetically pleasing”. He told the American news network: “It’s worth a try and we’ll see how effective it is. I only just agreed to it so it’s not a fully formed strategy.” Elon Musk will wish he got over his hatred of advertising long agoThe news comes one month after Musk announced that Tesla would prioritise sales growth ahead of profit in a weak economy starting a price war in the electric vehicles (EV) market. The company, which posted its lowest quarterly gross margin in two years in April, slashed prices in the USA and China in a bid to stay ahead of its rivals. Musk defended the company’s actions at the time saying: “It’s better to shift a large number of cars at lower margin and harvest that margin in the future as we perfect autonomy.” It follows predictions from Marketing Week columnist Mark Ritson who said behind Tesla’s impressive waiting lists and gross profit on each car sold was a short-term strategy that would need to be changed in the long run. “You advertise cars not just for the next 12 months of demand but – quite literally – for a lifetime beyond that point,” he said. The popularity of Musk himself has also been seen as a marketing tool for Tesla in the past with the CEO gaining a rabid fanbase over the years with his outspoken antics. This seems to have backfired since his purchase of Twitter, however, with Musk coming in for criticism for how he has handled free speech on the platform and his introduction of paid verification. Twitter has reportedly lost tens of millions of dollars in pulled advertising in the seven months since Musk bought the platform and he appointed a new CEO, Linda Yaccarino, this week with the task of turning around the social media platform’s advertising woes. Despite this, Musk is adamant he will not tone down his language, telling CNBC: “I’ll say what I want, and if the consequences of that is losing money, so be it.” Recommended
Problem with haters like you is that nothing Tesla does is seen positively, always a confirmation of your bias. When Tesla had margins of 20+% the criticism was, it sells so few cars that it was irrelevant, another overvalued Ferrari. When Tesla increased volumes (as its new factories moved into volume production), Tesla was in trouble because production outstripped demand. When Tesla lowered prices (reducing its margins but still higher than all but Ferrari) to stimulate demand and match its new production capacity, Tesla was a done deal because, well it reduced its margins. When Musk finally decides to advertise, that's a sign of weakness because he hasn't needed to do so till now yet still turned the Y into the world's best selling car. Tesla changing its pricing every other weak is proof that it's struggling, right? We don't know if traditional auto makers do the same because they have those pesky dealers to buffer the suggested retail prices. Regardless, it's another sign of Tesla demise. I can go back 3 years and point to all your posts stating Tesla was failing based on one or all of the above, all the while Tesla has been growing at or near 50% the last 3 years. There are criticisms I consent to, most directed at Elon Musk. Until he embraced media's attention most people thought he was a Leftie because of his environmental concerns, and the Right was framing him as a Leftie lunatic. Turns out he is a lose canon with strong libertarian ideals. I wouldn't care about his politics had he kept them to himself but... Musk significantly damaged Tesla's value which has affected its stock price and car sales. If he makes an effort to shut up (which I doubt) Tesla sales will hold their 50% YoY growth which should take the share price back to its high of 440 around the end of next year, maybe Q1 2025. I continue to believe TSLA will peak at 300 before the end of 2023, provided there aren't any world catastrophes between now and then. As for the erratic price changes, I would hold the price down and instead increase or decrease the amount of free charging when purchasing a new vehicle.