2022/05/11 (044) Technical Analysis – TSLA

TSLA Market Value Is Still 3 Times Bigger As VW, BMW & DAIMLER Combined…
That`s Why We`re Staying Short In TSLA & Close Our FB & MSFT Longs
– Because NDX Reached Our Target Price & APPL Was Stopped Ouz!


Tesla shares have been falling sharply since the beginning of April and this week seems to have continued to manifest a red weekly candle. Be that as it may, the electric car pioneer has given way considerably, and no one has ever died from profits, as we proverbially say in Germany, among us stockbrokers. Because the accumulated losses in the TESLA share, and profits from our short trading capability, could recover quickly in a brightening market environment. Regardless, Wells Fargo has cut its price target for the automaker from $960 to $900 and left the recommendation a hold. The reason given by the bank was “possibly declining margins due to inflation. So far, Tesla has passed on the price increases even before the increased prices for raw materials becamenoticeable. However, as soon as the supply contracts are adjusted to the spot prices, inflation will narrow the margins.” Inflation could certainly squeeze the carmaker’s margin, but the demand for the cars is so high that Tesla could push through further price increases. Nevertheless, Tesla shares remain ailing. Nevertheless, I would like to close this short trading capability. Since the e-car pioneer is well positioned in the long term, although it is undoubtedly more than fundamentally overvalued compared to other car manufacturers. Above all in comparison to ours from Germany and Austria.

The Last Few Weeks Have Been
More Than Gratifying For Our Short Trading Capability

While the paper was still well above $1,100 at the beginning of April, it recently slipped to $734.00. Tesla shares lost more than eight percent on Wednesday alone. Now it is up to the bulls to successfully defend the February low at $700.00. And continue to break through bears – to scale our initial target of below USD 500 up to USD 430.

Meanwhile, Tesla has been working on further bug fixes for its vehicles. The company fixes the next error in around 130,000 of its electric cars with a software update via radio. On affected Model 3 and Model Y vehicles, the computer in the infotainment system may overheat during fast charging, causing it to function poorly.

According to documents published on Wednesday night, the US road traffic authority NHTSA is officially carrying out the repair as a recall campaign, even if the cars do not have to go to the workshop for it. Tesla has already had several such recall campaigns this year, in which a software problem – similar to a smartphone – is solved via radio update. At the same time, around 700,000 vehicles actually had to go to the mechanic at the beginning of the year, most of them because the trunk lid could damage the rear-view camera cables.

In addition, Tesla, in Grünheide, in Germany, near our capital Berlin, is currently ramping up production. And plans, according to their own statements, that 12,000 employees will produce 500,000 cars a year in the first expansion phase of the factory. According to the state government, the electric cars have so far been manufactured in one-shift operation. The second shift is scheduled to start in the second quarter, and a third shift will then be planned depending on the production ramp-up. The plant was opened on March 22 in the presence of Tesla boss Elon Musk and Chancellor Olaf Scholz.

Tesla Many Times Overvalued And/Or More As Expensive

At the same time, it was announced that Ark sold more Tesla shares for at least $33 million, but still invested around $1 billion in the electric car pioneer. Despite the recent correction, Tesla is worth a whopping $840 billion, while the GM group is only valued at $60 billion.

As reported, classic car manufacturers are not only catching up when it comes to battery drives. Whenit comes to the assistance system, the BMW i4 “clearly overshadows” the Model 3 from Tesla, according to EFahrer.com recently.

Increase “Ridiculous”

Wood should irritate many of her fans with this step. At the beginning of 2022, she described the positive price development of GM and Ford in response to electric car announcements as “ridiculous”. In her opinion, the e-share in the sales mix of the classics, which was only two percent in the past, is too low. Apparently she’s changed her mind.

Is this an admission of having underestimated the new, old EV giants, a fear of focusing too much on Tesla amid the tech crash – or just clever? Ark, known for its colorful growth forecasts, buys value stock GM. The ETF provider Ark, which relies on highly valued stocks such as Roku, Zoom, Tesla or Teladoc, discovers the advantages of cheaply valued value stocks in the middle of the tech crash. Surprisingly, the Ark Autonomous Tech & Robotics ETF bought $6 million in GM stock. Cathie Wood expressed interest in the Auto-Dino’s Cruise robotic car technology last month, which is also pursuing an electric car offensive.Still Short NASDAQ:TSLA

But Close Long NASDAQ:FB
And/Or Long NASDAQ:MSFT

After Today`s Trading Session
– On Wednesday, The 11th May 2022

On 21st February 2022 i wrote this short trading capability about the TSLA share – entry price at 855 USD with a stop price at 1200 USD.

It was an extreme exciting roller coaster ride – with the TSLA share. Like always, by the way! However, let TSLA further falling if you’re also short at it! But at your own risk – independent of me! The both others contrarian longs FB & MSFT close at the next price action. I closed our 4XSetUps at todays last price action. So that we`re only short in TSLA for the next time – until our target price is reached. Because NDX reached our price target and/or also APPLE was stopped out. From that point of view don`t let us get too greedy! We made enought profits, with my 4XSetUps this year year. Isn`t it?

So that we can focus us on DXY and/or UKOIL in next days, next weeks, in our next D2D Editions…