All About Tesla’s Musk-Tique

This morning, I made my debut on CNBC’s show Worldwide Exchange with Frank Holland.Here are the notes I prepared.At the start of 2024, the entire EV space already had some issues:

  • infrastructure-not really setup yet to support EVs easily and or timely
  • weather-blackouts cut the ability for EVs to charge
  • competition-with tesla losing market share to Ford, GM, Rivian, and others, Tesla’s higher price became an issue. Plus hybrids have fared alot better-why Toyota stock soared
  • China also created lots of competition
  • used EV cars are sitting on lots without demand-Hertz dropped them from their car rentals
  • Musk-alot of controversies about his attention on Tesla diverted to his other interests
  • Cybertruck unsuccessful
  • Since the stock dropped from $265 to the recent lows of $160, Tesla has struggled to regain upward momentum:

  • Supply chain a smaller issue but still an aspect
  • Musk-wants more control of Tesla at the same time, Musk has become more political
  • Tesla just raised prices on the Model Y SUV while other EV companies cut prices
  • Tesla delivered way fewer vehicles than expected
  • Price of raw materials are rising
  • Positives

  • Tesla is still a dominant software company-self driving, solar, batteries, navigation, factory automation, and selling its software subscriptions.
  • Brand loyalty
  • Innovation-perhaps the key to much higher stock prices is when there is more mass adoption of self-driving cars-public not yet ready, but we can say Tesla will be at the forefront when they are.
  • Performance
  • TechnicalsLooking at the Daily Chart, the last major swing low was at 152.37 made on April 27, 2023.More recently, Tesla had a reversal bottom low at 160.76.Typically, once a strong reversal bottom is made, that could be a bottom UNLESS that price is violated.We see 180 pivotal and can attract buyers especially with the short float.Over 180, we would think it looks good for an active investment-maybe a move to 215 area.Should 160.76 fail then we have a $145-150 target in mind. That is the 80-month moving average or 6–7-year business cycle support.However, we would want to see evidence of strength at that level since 100-110 is not out of the question.I also appeared with Charles Payne on Making Money with Charles Payne-that clip is below.More By This Author:Yields Up, Dollar Up, Junk Bonds TumbleAn Eggs-cellent First Quarter — What’s In Store For The Rest Of 2024? The Economic Modern Family Ends Q1 Upright


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