I don't short so for me to make money I look to steep declines like today and sell higher when cooler heads prevail. Are you telling me TSLA will remain at 225 the rest of this year?
Not me. The market is saying down, as the selling continues this morning. Wonder how long Cathie Woods will hang in there with the position she took after lol selling NVDA before it screamed even higher? + + + Tesla misses on earnings Tesla reported third-quarter results, missing on both earnings and revenue for the first time since the second quarter of 2019. The electric vehicle maker reported earnings of 66 cents per share adjusted vs 73 cents per share expected and revenue of $23.35 billion per share vs $24.1 billion expected. Tesla’s total operating margin also came in significantly lower at 7.6%, from the year-ago quarter’s 17.2%. + + + I put together this Nasdaq biggies year to date percentage change composite chart. TSLA is the black line with only NVDA and META above. Not bad. But then look at blue trendline I plotted with yellow box (on right edge) showing possible break of up percentage trend. Drawing a fib% projection (not shown) it says 100% of prior down swing would land it down around 60 or where AMZN and GOOGL (Orange and Green) are right now. In dollars terms $225, current price roughly, although I see a possibility of $190 area being a future landing spot too.
shit, my feb 225 covered calls are massively in the money now but i don't have the money to close the trade. all my available funds are tied up in ARM puts until this friday. bad timing.
I just listened to the conference call after seeing the blood bath today. Elon pretty much sums up why I am not a motivated buyer even looking at the $217 after market price. Car companies do well in good economic times and not so well in bad economic times. I would usually be quite interested after this kind of blood bath but I would be shocked it doesn't get absolutely crushed at some point over the next 2 years. I think Musk was also alluding to a type of customer saturation that I have always wondered about. My car is pretty new but if I was in the market, I just don't want an EV. The only way I would buy a Tesla is if I can buy a gas powered model. So far Tesla has only got the upside of EVs. It is a big problem in the long run when your brand can't move into the space with the majority of the customers in the sector. In the any other sector that would be called a niche product.
Q3 reporting was expected to be a shit show with hopes that it wouldn't. It turned out to be worse and here we are. I've said before, the Cybertruck will remain a thorn in Musk's foot until forever or until the thing is discontinued. In good news, Tesla Energy is showing significant growth and high margin (24%). Tesla stated it's still expected to sell 1.8M units this year, a 50% YoY growth. Who else in the auto sector does that? Despite significantly lower margins (that's for SunTrader) it still tops most other auto manufacturers. Musk stated his goal to flood the market with lower price point vehicles, which he is doing rather well... Volume or margin, one has to choose.
All true as to margins/sales/profits/revenue growing faster than the industry as a whole as well as on a head to head comparison. And for that TSLA has been rewarded for years. Waaay overvalued IMO. Now that is being corrected. All high growth companies go through it. Question of the day is what valuation will the market settle on now that Q3 is out of the way and the dust is starting to settle with others pulling back on EV production goals and more realistic size of the projected market going forward?
May I suggest caution when predicting Tesla's doomsday. Yes, Q3 was less than stellar and the market is reacting. But Q4 is around the corner and Tesla has a history of significant rebounds. I bought low at 220 and have an order at 210, but I don't expect a return to 105, all else being equal. However, I'm still looking for 300 at some point in 2023.