2022/02/21 (006) Technical Analysis – TSLA

After the massacre in the Meta Platform stock, it`s TSLA turn today! 
TSLA market value is 3 times bigger as VW, BMW & DAIMLER combined
– and the technical picture also seems to be more than battered…


So far, the richest man in the world had not attracted attention with spectacular large donations. Elon Musk has now donated billions of shares to a charity. He can also benefit from this for tax purposes. According to SEC documents, Elon Musk donated $5.74 billion worth of Tesla shares to a charity last November. The organization’s name is not mentioned in the filing Musk filed with the SEC on Monday. The donation made Musk America’s second-biggest donor last year, behind Bill Gates and Melinda French Gates, according to Chronicle of Philanthropy data.

“Huge tax benefit” as is now apparent, the donation went hand in hand with the much-discussed sale of shares by the Tesla boss at the beginning of November, when Musk had parted with ten percent of his shares after a survey of his followers on Twitter – apparently also to avoid the accusation of to avoid tax avoidance.

Musk had previously stated that due to a lack of ongoing salaries, he could only pay his tax debts by selling shares. Exercising stock options from the electric car maker would result in over $11 billion in taxes due in 2021.

However, the large donation that followed shortly afterwards had a favorable tax effect. The donated shares are not subject to capital gains tax. He can also offset the donated amount against his income, according to Bob Lord of the Institute for Policy Studies, which deals with tax policy: “His tax benefit would be huge. He would save between 40 and 50 percent of the $5.7 billion in taxes, depending after whether he can offset the deduction against his California income and he would avoid capital gains tax.”

Musk promotes artificial intelligence

According to the “Bloomberg Billionaires Index”, Musk currently has a net worth of $227 billion, well ahead of runner-up Jeff Bezos with $180 billion.

So far, the multi-billionaire had not attracted attention with large donations. His Musk Foundation supports, among other things, development of secure artificial intelligence for the benefit of mankind”. It has also pledged $100 million for technologies to reduce CO2 in the atmosphere. Last year, schools in Cameron County, Texas, a site of his space company SpaceX, received $20 mil. and the city of Brownsville received $10 mil.Difficult overall market

Meanwhile, things are getting more and more uncomfortable for Tesla on the stock exchange. The industry rotation away from growth stocks is hitting the e-car pioneer with full force. Concerns are growing that the high valuation can no longer be justified in view of rising interest rates and profits lying far in the future. The escalation of the Ukraine conflict, which continues to weigh heavily on the overall market, is also exacerbating the situation.

With a market value of almost one trillion dollars, Tesla shares are still more than sporty even after the setback. Especially in the current turbulent market environment, this can become dangerous. The risk is correspondingly higher compared to an investment in General Motors, for example.

Tesla announces that it intends to sell as many electric cars as Volkswagen and Toyota together sell combustion engines. But the obstacles to growth are not in the hands of the company and its founder Elon Musk, but in the foreseeable development of the global markets.

As much as the media, together with politicians, sing about the supposed sleepiness of the German auto industry and its failures in transformation and electromobility, they are just as vigilant when the great role model Tesla and his never-tiring boss Elon Musk come up with even the smallest business ideas and statements there – the share price is already rising! Elon Musk’s company has a higher market cap at the end of 2021 than the world’s next nine largest automakers combined. Takeovers of traditional car manufacturers in the old world, such as in Germany, should thus be within reach – if Musk saw it as a useful addition and enhancement of his brand.

Tesla stock trades around 200 SMA

This Monday, February 21, is Presidents’ Day in the United States. Also called Washington’s Birthday, this is a holiday that honors everyone who has serviced in the office of the president of the USA.

The stock is setting up for another test of its long-term 200-day moving average, and is still sharply below the 50-day moving average. There is no proper entry in sight, as the stock continues to consolidate. The stock traded as high as 1,243.49 on Nov. 4, but ended Friday about 31% off that all-time high.Among Dow Jones stocks, Apple stock declined 0.9% Friday, falling further below the key 50-day line. Shares are building a cup-with-handle base with a 176.75 buy point. Software leader Microsoft lost 1% Friday, extending a losing streak to three sessions. Last week, the top Dow Jones stock gave up support around its long-term 200-day line.