Rumours of sub-standard parts needing replaced, working practices under scrutiny and well behind the curve on promised Model 3 delivery numbers. How far will Tesla fall?
Tesla does not need to go far at the moment to find its own troubles and will probably be thankful that the Facebook saga is grabbing the headlines. As has been suggested on this thread on numerous occasions, the share price does seem headed back towards the $300 level and if this is broken there could be significant further downside. Long-term, great potential, short term, serious financial issues to be addressed.
This share looks to me as though this time it will crash through the previous support level of $300. Unless Elon Musk can pull another rabbit out of the hat - where does he get all these rabbits from?
Elon Musk seems to have his hands full with his Space Travel company Even though his massive Tesla bonus package has been voted through, he has been very quite of late. Are we due a big announcement or is he struggling to find any good news to relieve the pressure on the share price?
This coming week must be one of the most testing for Tesla in recent times, as the shares hover just above the psychologically important level of $300. I would guess there are a fair few sale programs ready to go should the shares dip below $300. In the longer term there is certainly good potential for Tesla to make serious money but if the shares do dip below $300 I would not be in a rush to buy them until they steady off.
I would have expected Elon Musk to roll out the traditional good news story to stop the share price falling below $300. Might the wizard finally have ran out of news to spring to the market?
Well well, has Tesla been caught out by disappointing delivery numbers for the Model 3? The company's debt is now at junk bond status - not exactly useful if (or should we say when) the company needs to raise more cash. Elon Musk will no doubt bring out some good news with the sales figures and first quarter figures but the debt problem and cash flow are not issues which will be solved overnight. Is the halo starting to slip?
Are we at a situation where Tesla is either a long term screaming buy on or the verge of going bust? Whatever happens, the share price will not hang around at current levels for much longer. I wonder if there are any supportive allies out there who might offer support to the share price ahead of what must be an inevitable fund raising sooner rather than later?
Institutions are crying out for some good news and hey presto, Elon delivers (again). I would still be a seller into strength, the company's financial situation is still in a mess and they will need to raise funds THIS YEAR. Dead cat bounce, fall into the trap at your own peril.
Seems like you either love him or you hate him lol http://www.afr.com/leadership/innov...o-buy-into-the-elon-musk-hype-20180327-h0y1xu
