Just looking at the daily chart, $180 looks like first support to me, $150 second support. Unless some other group asserts overall market leadership, the MOMO names look as though they're headed much lower.
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Just looking at the daily chart, $180 looks like first support to me, $150 second support. Unless some other group asserts overall market leadership, the MOMO names look as though they're headed much lower.
Here's my chart for TSLA.
What is going on here? Not since post Q3 have we had a selloff this bad. Actually, I was expecting TSLA to remain relatively flat but we got another beating today. The only difference this time around is the fact that the selloff is happening after a stellar ER and CC while there's nothing but good things to come for Tesla.
I think if TSLA breaks the 50-day MA, then being under 200 becomes a real possibility.
What is going on here? Not since post Q3 have we had a selloff this bad. Actually, I was expecting TSLA to remain relatively flat but we got another beating today. The only difference this time around is the fact that the selloff is happening after a stellar ER and CC while there's nothing but good things to come for Tesla.
I think if TSLA breaks the 50-day MA, then being under 200 becomes a real possibility.
Short term movements are impossible to predict...the further we go down the more likely I think we correct back up again...it's hard because we're all bulls and feeling emotionally down from this beating...but to me if I was to bet short term I'd bet we come back up to close out the week (unless the whole market continues its 'correction' downwards)
That's why I am intrigued by such the lackluster price action. The selloff after the fires and some profit taking after such a huge run to 265 was understanable, but this is starting to seem a little unwarranted. We are now in oversold territory though, and some good news is potentially just over the horizon. I guess it's just a matter of being patient and letting the market come to its senses.
efxjim
Member
I am afraid that Panasonic President's remarks will put additional downward pressure on TSLA:
Speaking at a briefing in Tokyo, Panasonic President Kazuhiro Tsuga said the company has not yet committed to the Tesla Gigafactory project. The executive said doing so would raise investment risks for the company.
http://www.streetinsider.com/Insiders+Blog/Panasonic+Hasnt+Committed+to+Teslas+%28TSLA%29+Gigafactory%3B+Cites+Increased+Risk/9321588.html
Speaking at a briefing in Tokyo, Panasonic President Kazuhiro Tsuga said the company has not yet committed to the Tesla Gigafactory project. The executive said doing so would raise investment risks for the company.
http://www.streetinsider.com/Insiders+Blog/Panasonic+Hasnt+Committed+to+Teslas+%28TSLA%29+Gigafactory%3B+Cites+Increased+Risk/9321588.html
Looks like the NASDAQ began the day in correction mode again with all the big gainers from last year getting hit hard again...wonder if the timing in these huge winners being hit hard has anything to do with tax time
The Blue Owl
Endangerous Herbivore
To me, it seems this news contributed to the amplification factor, but look, it's the Blue Danube all over again:
To-do-da-da-daaa...
Tam-tam...
Tam-tam...
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Trading TSLA shares or options currently has almost nothing to do with the company and everything to do with the overall market / macroeconomic forces. Buyer/seller beware. Until this mess is over, we are basically a NASDAQ index fund of one.
MartinAustin
Active Member
All Tsuga is saying is, they haven't signed the contract to build the factory yet. They are still working out where it's going to be. That plays into the financing of the project. Once the location is known (down to the street address, probably) all parties will sign a gigantic contract, and at that point they are "committed."
I am sure they are very interested in committing... they are just working out the last details of the contract.
Not sure I agree. TSLA is down twice as much percentage wise than Nasdaq over the last five days.
That's right. I'm not buying the whole "amplification factor" either...TSLA has underperformed the NASDAQ recently even on sessions where the NASDAQ was up.
The Blue Owl
Endangerous Herbivore
Auto dealers are losing the PR war. This is from the editorial board of the New York Times: Car Dealers Tilting at Tesla.
The Blue Owl
Endangerous Herbivore
They are citing the Panasonic executive's comments on the Gigafactory.
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Of course, it's not ironclad. There will be days, especially when news or rumours are circulating, when the correlation breaks. But when there is no news, that seems like a plausible characterization to me.
Could this entire drop simply be portfolio rebalancing/ profit taking/stops being hit/ a lack of news? Q1 ends on Monday. Note how Google, which is very over owned at the moment, is down a significant amount from two weeks ago, for the first time all year, while Apple, which is very under owned at the moment, has been showing a ton of strength.
I think that level of commitment is the differentiator here. One level for Panasonic would be to play a role of an operator, hired to operate the Giga-Factory which is owned by others. Another level altogether would be to play a role of an operator AND part owner.
There several layers of implications for TSLA if Panasonic does not want to be a partner, just an operator.
1. TM will need to either come up with an additional $1B that was reported as a possible Panasonic contribution, or search for another partner, or attempt to raise additional funds publicly.
2. TM will need to decide if they want Panasonic as an operator: on one hand it is better to have part owner operating the factory to have them vested in the results, but on another, replacing Panasonic with somebody else at this stage will be a disruption and will require additional R&D expense.
All in all I do not see this as a trivial matter as it has potential impact on the finances of TM, and forces them to focus on yet another additional issue. I am confident that they will solve the puzzle one way or another, but this will put downward pressure on TSLA short term, regardless of other external factors that might drive the price movements. I think that these influences are decoupled, i.e. one could apply principle of superposition.
I actually had a feeling that Panasonic is wavering after hearing some frustation and hesitation in Elon's voice when he answered question about Panasonic participation during his Bloomberg interview back in January...
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Comments from Wedbush analyst Craig Irwin regarding the Panasonic non-committal to the factory:
"Panasonic today gave a business update where President Kazuhiro Tsuga said Panasonic has not yet committed to participating in Telsa’s GigaFactory as it could increase Panasonic’s investment risks. While Tesla contends the batteries Panasonic makes are their own technology and formulation, we note Panasonic is widely recognized as the world’s highest quality lithium ion battery manufacturer. Having Panasonic as a joint venture
http://www.streetinsider.com/Hot+Co...5+at+Wedbush+on+GigaFactory+Risk/9323201.html
Panasonic isn't the only battery manufacturer in the world. Tesla stated it may (will?) partner with multiple companies. (Maxell, Simplo, Desay, LG, Apple, Google?)
Apple would be a logical partner, since $2 Billion or heck, even $5 Billion is a drop in the bucket for it. Apple would directly benefit from a gigantic environmentally friendly battery factory in the United States.
Apple would be a logical partner, since $2 Billion or heck, even $5 Billion is a drop in the bucket for it. Apple would directly benefit from a gigantic environmentally friendly battery factory in the United States.
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