Followers | 679 |
Posts | 141155 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Monday, August 15, 2022 9:14:35 AM
By: Investing.com | August 15, 2022
Elon Musk, CEO of Tesla (NASDAQ:TSLA) has just announced that the electric vehicle (EV) car manufacturer, has manufactured over 3 million cars. Musk pointed out that this landmark is no small feat considering China's COVID-19 lockdown, where one third of the EVs were manufactured.
Still, while Musk congratulates his employees, this news underscores how small Tesla's car business is. The world's largest carmaker Toyota (NYSE:TM) produced 10 million cars in 2021, and the second largest automaker, Volkswagen (OTC:VLKAF) delivered about 9 million vehicles in the same year. Tesla's 3 million is in the company's entire history. Nevertheless, the EV maker hit a market cap of $1,000 billion last year, more than the market cap of the top 9 global carmakers combined.
As of now, the company's market capitalization is $940.14 billion. Is it justified?
First, we have to ask how much of that valuation is because of the business, and how much of it is because of everything surrounding its CEO—Musk's investment in SpaceX and cryptocurrencies, as well as his gurulike persona?
For example, how much did the whole cryptocraze impact demand for Tesla shares?
Tesla, Nasdaq, Bitcoin Weekly
Looking at the chart we can see a high positive correlation between TSLA and Bitcoin, which it does not share with the Nasdaq 100.
But despite the selloff in cryptos, for now the tide still seems to be with Tesla. Investors are looking forward to the three-in-one stock split this week and a dividend starting August 24. For example, Soros Fund Management added $20 million in shares to its holding. Its Tesla shareholding makes up an estimated 0.4% of Soros's $4.6 billion US equity portfolio. However, Musk has sold 7.92 million shares worth $6.88 billion.
Morgan Stanley's Adam Jonas expects a 32% gain in the share price over the next 12 months, targeting $1,150, which is a cut in his initial target of $1,200 due to the slowing economy.
So, here's my take. Tesla is likely to rise first before it falls.
Tesla Daily
TSLA appears to have completed a Falling Flag, bullish following a 20% surge in only five days. However, I would prefer a spike in volume to support a breakout, and I would like to see the price close above the 200 DMA.
The upside move will bring Tesla to the top of a falling channel that has been dominating the price since its November all-time high.
Then, I'd turn bearish again.
Tesla Weekly
And if the falling channel remains intact, the price will complete a massive H&S top.
Trading Strategies
Conservative traders should wait for the price to close above the 200 DMA, then produce a return move that reinforces the pattern's support before risking a long position.
Moderate traders would wait for the close above the 200 DMA and return move for a better entry, if not added confirmation.
Aggressive traders can go long now, provided they are prepared for a potentially bumpy ride.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent TSLA News
- Bain Capital in Talks to Acquire PowerSchool; Blackstone Emerges Victorious in Hipgnosis Bidding War, and More News • IH Market News • 05/09/2024 11:53:19 AM
- Meta Platforms Expands AI Ads, Apple Boosts iPhone Shipments, and More Highlights • IH Market News • 05/08/2024 12:27:48 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 05/07/2024 09:16:57 PM
- Tesla’s April Sales Down 18% in China, Amazon’s Multi-Billion Dollar Cloud Expansion in Singapore, and More News • IH Market News • 05/07/2024 11:44:00 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 05/06/2024 08:16:07 PM
- Form PX14A6G - Notice of exempt solicitation submitted by non-management • Edgar (US Regulatory) • 05/06/2024 06:37:09 PM
- Perficient Stock Soars 52.9% Post-Acquisition; Luminar Declines 10% Amid Workforce Cutbacks, and Other News • IH Market News • 05/06/2024 12:09:00 PM
- Futures Pointing To Roughly Flat Open On Wall Street • IH Market News • 04/30/2024 01:07:52 PM
- U.S. Index Futures Point to Mild Decline Ahead of Key Earnings and Fed Rate Decision • IH Market News • 04/30/2024 11:59:59 AM
- Alphabet CEO’s Billion-Dollar Wealth, Microsoft’s $1.7B Indonesia Investment, and More News • IH Market News • 04/30/2024 11:58:40 AM
- U.S. Stocks Finish Quiet Day Modestly Higher • IH Market News • 04/29/2024 08:25:53 PM
- Philips Stocks Soar 47% Following US Deal, Tesla Bolsters Presence in China, and More News • IH Market News • 04/29/2024 11:11:24 AM
- Anglo American Rejects BHP Group’s Offer, Toyota Invests $1.4 Billion in Indiana, and More News • IH Market News • 04/26/2024 11:48:07 AM
- Futures Pointing To Sharply Lower Open On Wall Street • IH Market News • 04/25/2024 01:09:21 PM
- U.S. Futures Drop in Pre-Market Trading as Tech Stocks Plunge After Meta Issues Gloomy Forecast • IH Market News • 04/25/2024 11:53:54 AM
- U.S. Stocks Finish Lackluster Session Little Changed • IH Market News • 04/24/2024 08:33:00 PM
- Block Innovates Bitcoin Mining, DOJ Proposes 3-Year Prison for Changpeng Zhao, and More Crypto News • IH Market News • 04/24/2024 05:50:55 PM
- Upbeat Earnings News May Lead To Extended Rebound On Wall Street • IH Market News • 04/24/2024 01:09:05 PM
- U.S. Futures Display Mixed Results Amid Earnings, WTI and Brent Crude Prices Dip in June Futures Trading • IH Market News • 04/24/2024 11:31:20 AM
- Tesla Surges 12% with 2025 Affordable Vehicle Promise, Evotec Slumps 36% on Uncertain Outlook, and Latest Earnings • IH Market News • 04/24/2024 11:29:58 AM
- Coca-Cola and Microsoft Sign Billion-Dollar Agreement, Apple Event Set for May 7, and More News • IH Market News • 04/24/2024 11:28:02 AM
- Stocks Close On Firm Note For 2nd Straight Day On Earnings Hopes • IH Market News • 04/23/2024 09:00:38 PM
- Tesla Releases First Quarter 2024 Financial Results • Business Wire • 04/23/2024 08:09:00 PM
- Futures Pointing To Extended Rebound On Wall Street • IH Market News • 04/23/2024 01:11:27 PM
- U.S. Index Futures Rise in Pre-Market, Oil Prices Dip Slightly • IH Market News • 04/23/2024 11:26:41 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM
Moon Equity Holdings, Corp. Announces Acquisition of Wikolo, Inc. • MONI • May 7, 2024 9:48 AM