Stock Market Analysis Report - 7/6/18...Why Did Tesla Fall From The Sky Like A Space X Rocket???
It was just four days ago I talked about Tesla hitting its 5,000 Model 3s production rate in the last week of the second quarter and that I expected price to pop at the market open.
Well, it popped, hitting a high of $365, but then price reversed and closed at $330. Then price fell another $29 the following day. Then price fell to $296.50 yesterday. But why did price drop 50+ points, they hit their Model 3 production rate?
In the above post I also stated the real question remains can Tesla consistently maintain these production weekly goals? Wall Street doesn’t think so based on Elon Musk reportedly telling workers to stop performing a critical brake test on Model 3s. The brake and roll test is a critical test to ensure the car’s wheels are correctly aligned and that brakes are working properly. It was also reported that a Tesla employee said there were cars taken off the production line for rework, but being counted towards the 5000 Model 3 weekly production goal.
Based on the daily chart, price is in the middle of the range right now. Price has been range bound since March. As they say, don’t fiddle in the middle. If you are bullish, wait for price to come down a bit more. I think things start getting interesting near the $280 level.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
I think more stock investors are thinking abiut valuations and the assumptions embedded into some of these high flying companies. Although I believe Tesla has a powerful long term brand, it needs to catch up on performing to its valuation.
Well said.
Tesla has a cult following of die hard investors. I see bumps in the road in the future, but I'm not betting against Elon based on his pass success.
TSLA is not profitable in real life. It relies upon us government subsidies.
Agree, if they can produce the Model 3 with some consistency, they will have a chance of being profitable in the future.