What is happening with Tesla stock and when will it stop? Getting a lil nervous.

[TruckElectric]

Dids, that’s reassuring stuff. Yet can’t help being nervous. Could we see this get bogged way back down around 400 a share?!

This was posted last Saturday :

"TSLA stock is hitting resistance at the 21-day line, at least for now.

Keep in mind that the 50-day/10-week line test is a test. A successful test would offer a new buying chance, but a failure could trigger a sell signal.

If TSLA stock falls decisively through 50-day/10-week line, what's the next support area? Perhaps 695, the price at which Tesla entered the S&P 500 index. Beyond that you're looking at top of the prior base at about 500. The 200-day line is now about 450, not far from the November breakout buy point of 466.

All of that would be in character for TSLA stock, especially if the market fell into a correction. In the huge run from late 2019, Tesla stock has had some deep bases.

So if investors do buy Tesla stock at or near these levels, price that off the 10-week line and be ready to sell. A decisive break may be a signal for longer-term investors to take some more profits.

Tesla arguably is the most important stock in the market rally. It's the ultimate story stock, with a huge market cap. Call options helped fuel its 2020 run. Ark Funds is a major Tesla stock investor and champion. The EV maker has even bought $1.5 billion worth of the power-hungry Bitcoin.

If and when Tesla marks a major top, that could trigger or coincide with a big stock market top."


https://www.cybertruckownersclub.co...ket-rally-the-bear-case-for-tesla-stock.2540/

Advertisement

 

[TruckElectric]

Tesla (TSLA) Extends Breakdown Amid Valuation Concerns


Tesla, Inc. (TSLA) shares extended their losses during Tuesday's session as the market continues to reassess the company's valuation amid rising real interest rates and falling Bitcoin (BTCUSD) prices.


KEY TAKEAWAYS

• Tesla shares extended their losses during Tuesday's session as the market rethinks the stock's valuation amid rising real interest rates and lower Bitcoin prices.
• Wedbush Securities recently estimated that Tesla made about $1 billion in profit from its Bitcoin position, effectively tying some of its fortunes to the cryptocurrency.
• The stock broke down from the 50-day moving average during Monday's session and extended those losses on Tuesday to trendline support levels.

Tesla stock trades with a forward price-to-earnings ratio of more than 185x compared to just 19x for the wider automotive industry. With real interest rates on the rise, the market has transitioned from growth to value stocks, putting pressure on high valuations. The electric vehicle industry has also been dealing with disruptions from a global chip shortage.


There's also the Bitcoin angle. After purchasing $1.5 billion worth of Bitcoin, Tesla racked up an estimated $1 billion profit earlier this month, effectively tying the stock's valuation to the cryptocurrency's performance. Bitcoin prices fell more than 8% during Tuesday's session, which may have further contributed to the selloff in Tesla stock.



A real interest rate is an interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender or to an investor. The real interest rate reflects the rate of time-preference for current goods over future goods.

TradingView.com

From a technical standpoint, Tesla stock broke down from its 50-day moving average at $770.71 on Monday before falling further to key support levels on Tuesday. The relative strength index (RSI) is approaching oversold levels with a reading of 30.50, while the moving average convergence divergence (MACD) remains in a sharp downtrend. These indicators suggest that the stock could see some near-term consolidation, but the overall trend remains bearish.

Traders should watch for consolidation between trendline support at around $650.00 and the 50-day moving average at $770.71 over the coming sessions. If the stock breaks down, traders could see a move toward Fibonacci support at $592.02 or $508.28. If the stock breaks out, traders should watch for a retest of highs of around $900.00.


The Bottom Line
Tesla shares extended their losses during Tuesday's session as the market reassesses valuations amid rising real interest rates. In addition, the stock could be affected from falling Bitcoin prices following its $1.5 billion investment as well as a global chip shortage.

SOURCE: INVESTOPEDIA

 

[Cyber_Dav]

Analysts crack me up. Total gobbledygook speak that ends up saying "it might go up or down".

 

[TruckElectric]

Elon Musk Loses $15 Billion in a Day After Bitcoin Warning
By
Devon Pendleton
February 22, 2021, 4:03 PM CST Updated on February 23, 2021, 7:11 AM CST

Elon Musk is no longer the world’s richest person after Tesla Inc. shares slid 8.6% on Monday, wiping $15.2 billion from his net worth.



Tesla’s biggest decline since September was fueled in part by Musk’s comments over the weekend that the prices of Bitcoin and smaller rival Ether “do seem high.” His message -- via his favored medium of Twitter -- came two weeks after Tesla announced it added $1.5 billion in Bitcoin to its balance sheet.



The cryptocurrency, which has surged more than 400% over the past year, tumbled for a second day on Tuesday, at one point slipping below $50,000on skepticism over the durability of its rally. Tesla shares also continued their slide in early trading in New York, falling 5.2% to $677.50 at 8:09 a.m.



Top Five
Elon Musk loses his title of world's richest person

Source: Bloomberg Billionaires Index

Musk also tweeted earlier Monday that the company’s Model Y Standard Range SUV would still be available “off the menu,” backing up reports from electric vehicle news site Electrek that the model had been removed from its online configurator.



Musk drops to second on the Bloomberg Billionaires Index of the world’s 500 richest people with a net worth of $183.4 billion -- down from a peak of $210 billion in January. Amazon.com Inc. founder Jeff Bezos reclaimed the top spot even as his fortune fell by $3.7 billion to $186.3 billion Monday.


The two billionaires have been swapping places since January as the value of Tesla fluctuated. The stock surged as much as 25% to start 2021 before wiping off almost all of this year’s gain. Musk briefly overtook Bezos after his rocket company SpaceX raised $850 million earlier this month, valuing the company at $74 billion, a 60% jump from August.

Bezos occupied the top spot on the ranking for three straight years prior to January, when Musk eclipsed the e-commerce titan thanks to a 794% rally in Tesla shares.

The market selloff on Monday hit many of the world’s ultra-rich. Zhong Shanshan, Asia’s wealthiest person, was the second-biggest decliner on the Bloomberg index, dropping by $5.1 billion as his bottled-water company fell 4.5%. Colin Huang of Pinduoduo Inc., Reliance Industries Ltd.’s Mukesh Ambani and Tencent Holdings Ltd.’s Pony Ma all lost more than $2.5 billion each.

SOURCE: BLOOMBERG

SOURCE: BARCHART

 

[Dids]

Dids, that’s reassuring stuff. Yet can’t help being nervous. Could we see this get bogged way back down around 400 a share?!

That was all opinion. Don't make decisions on my opinions because that would be foolish! But personally if Tesla goes to 400 I will add more because I belive they are worth more than that valuation.

 

[TruckElectric]

BUSINESS
A tangled market web of Tesla-bitcoin-ARK Investment could spell trouble for investors, warns strategist – MarketWatch


Tuesday is shaping up to be a tough one for technology stocks, after a selloff greeted investors to start the week.

The Nasdaq Composite
COMP,
-2.46%
— up 40% over the past 12 months — tumbled 2.5% on Monday over concerns rising bond yields could make those tech stocks look pricey. When so-called “risk-free” yields are climbing, it is that much tougher to justify equity valuations that seem lofty.

Leading techs lower in premarket is electric-car maker Tesla
TSLA,
-8.55%,
down 6% after a roughly 8% drop on Monday. Our call of the day comes from Saxo Bank’s head of equity strategy, Peter Garnry, who has been warning clients that Tesla is tangled up in a “risk cluster” that involves bitcoin and Cathie Wood’s ARK Investment Management firm.

Tesla announced a $1.5 billion bitcoin investment earlier this month. Along with Tesla weakness, bitcoin was down 10% early Tuesday, which some attributed to criticism from Treasury Secretary Janet Yellen (see below). That crypto drop will “obviously illustrate the earnings volatility that Elon Musk has delivered to Tesla,” said Garnry.

Read: Tesla bitcoin gambit already made $1 billion, more than 2020 profit from car sales, estimates analyst

Meanwhile, Tesla “is also the biggest position across all ARK Invest ETFs which added pressure to its biggest fund the ARK Disruptive Innovation Fund
ARKK,
-5.79%
losing 6% yesterday. This is exactly the risk cluster that we have been worrying about and wrote about two weeks ago,” said the strategist.

Read: Stocks aren’t in a bubble, but here’s what is, according to fund manager Cathie Wood

In the Saxo note that deep-dived into the hugely popular, actively managed fund’s holdings, Garnry highlighted ARK’s concentration in biotech names that he said could be risky if the market decides to reverse. And Tesla shares represents 6.7% of total assets under management across ARK’s five actively managed ETFs, according to the data Saxo crunched two weeks ago.

“What it means is, that a correction in equities for whatever reasons, could be higher interest rates or prolonged COVID-19 lockdowns, could set in motion selloffs across either biotechnology stocks or Tesla shares and cause performance to deteriorate which could start net outflow of AUM and then the feedback loop has started,” said Garnry, at the time.

For her part, Wood, the chief executive of ARK Invest and manager of the popular ARK Innovation exchange-traded fund, last week said she was surprised by how fast companies are adopting bitcoin, and that her “confidence in Tesla has grown.”

SOURCE: PMNEWS

 

[TruckElectric]

That was all opinion. Don't make decisions on my opinions because that would be foolish! But personally if Tesla goes to 400 I will add more because I belive they are worth more than that valuation.

I have to agree with Dids. If TSLA goes to between 450-400 it's a steal for long term investors.

 

[rr6013]

Dids, that’s reassuring stuff. Yet can’t help being nervous. Could we see this get bogged way back down around 400 a share?!

Nervous? like AAPL, the most profitable company in the history of the world, it fell below $12/share. TSLA stock valuation could easily become depressed. Single digits? NO. Double digits? No way. Triple digits… easily. But its the best ride you could pick. Have fun, hold on or get out. This is how you ride a bull.

Like AAPL, the innovator, TSLA is not re-inventing the wheel, car nor transportation. Apple didn’t invent a damn thing. It innovated. Taking 3rd generation technology and reimaging how much better it would be if it were combined in a way that simply worked. SteveJobs saw the futility in mechanical buttons failure rate, miniature keyboards too small for fingers not to mention thumbs - SteveJobs wanted something that ”just worked”.

TSLA is AAPL mirror image. taking the automobile removing the dirty dirty bits Tesla cleans up the whole value chain of cars. It eliminated what was broken, breaking the planet and making us all choke on tailpipe emissions spilt into the air we breathe.

THE biggest risk is Elon Musk. TSLA’s greatest asset is Elon Musk. SO you begin to see how fricking fast a stock can fall when a leadership vacuum strikes a company. Good news is that Elon has built a 6year leadership into Tesla, Tesla markets and vertically integrated in a way that will be almost impossible to compete directly with its products.