All About Tesla’s Musk-Tique

April 2, 2024

Mish's Daily

By Mish Schneider


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This morning, I made my debut on CNBC’s show Worldwide Exchange with Frank Holland.

Here are the notes I prepared.

At the start of 2024, the entire EV space already had some issues:

  1. infrastructure-not really setup yet to support EVs easily and or timely
  2. weather-blackouts cut the ability for EVs to charge
  3. competition-with tesla losing market share to Ford, GM, Rivian, and others, Tesla's higher price became an issue. Plus hybrids have fared alot better-why Toyota stock soared
  4. China also created lots of competition
  5. used EV cars are sitting on lots without demand-Hertz dropped them from their car rentals
  6. Musk-alot of controversies about his attention on Tesla diverted to his other interests
  7. Cybertruck unsuccessful

Since the stock dropped from $265 to the recent lows of $160, Tesla has struggled to regain upward momentum:

  1. Supply chain a smaller issue but still an aspect
  2. Musk-wants more control of Tesla at the same time, Musk has become more political
  3. Tesla just raised prices on the Model Y SUV while other EV companies cut prices
  4. Tesla delivered way fewer vehicles than expected
  5. Price of raw materials are rising

Positives

  1. Tesla is still a dominant software company-self driving, solar, batteries, navigation, factory automation, and selling its software subscriptions.
  2. Brand loyalty
  3. Innovation-perhaps the key to much higher stock prices is when there is more mass adoption of self-driving cars-public not yet ready, but we can say Tesla will be at the forefront when they are.
  4. Performance

Technicals

Looking at the Daily Chart, the last major swing low was at 152.37 made on April 27, 2023.

More recently, Tesla had a reversal bottom low at 160.76.

Typically, once a strong reversal bottom is made, that could be a bottom UNLESS that price is violated.

We see 180 pivotal and can attract buyers especially with the short float.

Over 180, we would think it looks good for an active investment-maybe a move to 215 area.

Should 160.76 fail then we have a $145-150 target in mind. That is the 80-month moving average or 6–7-year business cycle support.

However, we would want to see evidence of strength at that level since 100-110 is not out of the question.

I also appeared with Charles Payne on Making Money with Charles Payne-that clip is below.

 

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Mish in the
Media - All clips here

Making Money With Charles Payne Mish talks about small and mid-cap stocks and why sticking to companies with strong balance sheets and earnings growth makes for best investments 04-02-24

CNBC Worldwide Exchange Tesla is one aspect of a much larger megatrend in EVs. Mish covers the advantages/disadvantages of the company and the space 04-02-24

Neil Cavuto Fox Business Mish and Frances talk rising inflation, keeping current rates, sentencing SBF and trying to stop a train with talk 03-29-24

Business First AM Listen why Junk Bonds, Microsoft, Retail and Natural Gas all have something to say 04-02-24

Schwab Network Mish goes through why it may not matter as commodities are picking up regardless. 03-28-24

Stockpick.app Mish takes you through retail, gold miners, DJT and Netflix 04-01-24

Business First AM Mish tells you why she likes gold miners and feels they could run more 03-28-24

CNA Asia First Where will money rotate after the FOMC-Mish talks to Singapore 03-20-24

The Morning Run BFM 89.9 Malaysia Business radio What’s next for interest rates, Fed policy and why we need to watch long bonds 03-20-24

Business First AM Mish checks the charts on commodity prices 03-20-24

Schwab with Nicole Petallides -Mish covers her predictions and why solar should be watched along with commodities and long bonds 03-15-24

Real Vision Daily Briefing Mish goes through all the factors to watch for the stocks and commodities next big moves 03-18-24

Financial Sense Jim Pupluva Mish and Jim talk about the signs of inflation and recession-both are still on the table 03-15-24

Business First AM Identifying Warning Signs and why Alibaba 03-13-24

 

Coming Up:

April 3 Final Bar Stockcharts TV

April 9 Wealth365

Weekly: Business First AM, CMC Markets, and new to us-stockpick.app

 

ETF Summary

S&P 500 (SPY) 520 now resistance

Russell 2000 (IWM) 201 support and then after that is 185

Dow (DIA) 385 support 400 resistance

Nasdaq (QQQ) 440 the pivotal area

Regional banks (KRE) 45-50 range

Semiconductors (SMH) 223 support near term

Transportation (IYT) 68 area support

Biotechnology (IBB) 135 pivotal

Retail (XRT) 75 support

iShares iBoxx Hi Yd Cor Bond ETF (HYG) 76.50 support and back over 77 better

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