Looks like $320 will be the next important level for the shares - stay above this level and they are likely to bounce higher, crash through and we may be back into the recent trading range. Still not sure of the underlying fundamentals - so many questions still need answered.
This is a traders dream with sentiment changing on a six pence! While I think the shares are still very much over valued I dont have a clue at the moment as to the short term direction. However, I do believe they are in danger of being dragged back below $300 which would be a pivitol move. Until the company actually starts to record regular quarterly profits it is going to be volatile to say the least!
Heavy heavy selling pressure again and analysts are not happy:- https://www.cnbc.com/2018/07/03/wall-street-is-still-worried-over-tesla-model-3-demand.html
Tesla has received billions of dollars in tax breaks and subsidies from the US government along with Facebook and Apple:- https://www.mercurynews.com/2018/07/03/google-tesla-apple-facebook-rake-in-massive-subsidies-report/
Crashed through the $320 support level and only just bounced off the next support - prior to, in my view, crashing through support just below $300. Things now seem different with Tesla, more news is leaking out and maybe investors would rather wait and see what happens than jump in on the back of comments made by the management. There is no doubt that Elon Musk is a seriously successful business man but how long can he hold back the flow of negative news and comments?
There is a pattern emerging with Tesla, every short term recovery gives the bulls false hope that the worst is over and we also have some of the shorters closing their positions. However, just when supporters think the share price is moving to the next level, bang, it seems to come crashing down again. I find it hard to believe the company will not need to go back for additional capital in the short to medium term.
There is very little chance of Elon Musk staying out of the headlines whether deliberately or due to his genuinely good intentions. He is now talking about sending over “kid -sized” submarines to save the Thai football team trapped underground.
Thought of the day, if (I appreciate it is an outside chance) Tesla was to go under, who would supply spare parts to existing Tesla vehicles? Is there an argument that it is dangerous to invest money into fleets of Tesla vehicles while the company would appear to be in such a precarious position?
Someone out there will always pick up the slack for spares so that is not really a massive issue. What is the main issue here is the fact that more so than ever Elon Musk himself is over shadowing the news when it comes to Tesla. He has always been a lead from the front kind of guy but never to this extent when his personal views and mistakes are highlighted day after day by the press. It is impacting investor confidence and playing into the hands of the shorters.
