Tag: Tesla (TSLA)

These Stocks Are Falling Knives

Posted on by Aibek Burabayev

It is good to see a Head and Shoulders pattern in the making and to see it in the final stage is great luck. Fortunately, I spotted one such pattern in the chart of the Tesla (NASDAQ:TSLA)TSLA Weekly Chart

Source: TradingView

The stock price of Tesla has been trading in a big range between $180 and $414 after it managed to break above the Y2020 top of $167. Peak points were distributed unevenly as we can see the lower tops on both sides of the all-time high. This has shaped a notorious Head and Shoulders pattern on the weekly chart.

We saw this model in the Ethereum and AMD charts this year.

The model is clear; it has slightly up-sloping angle as the Right Shoulder is located higher than the Left Shoulder. A Neckline has been built through the valleys of the Head. The stock price has been hovering here for some time.

Last week, the market closed below the Neckline triggering the bearish signal.

The target of this pattern is located in the negative numbers area so I skipped it. Instead, I highlighted three potential supports that could stop the upcoming collapse.

The first support is located at the peak of August 2020 at $120. It was broken to the upside and then it was retested by a huge consolidation.

The next support comes from the top of February 2020 at $65. The price has been struggling to overcome it for a long time. The book value level of $13 is the ultimate support based on fundamental data. Continue reading "These Stocks Are Falling Knives" →

Tesla (TSLA) Gets Booted from the ESG Index

Posted on by Matt Thalman

On May 2nd, the S&P 500 removed Tesla (TSLA) from its ESG Index, which is short for environmental, social, and governance. In recent years ESG investing has grown in popularity as more and more investors push for companies to treat the environment and their stakeholders to a higher standard. But, Tesla, a company that many people would point to as the poster child of an environmentally-friendly company, is no longer on the S&P 500's list of companies that are considered environmentally friendly.

If you are confused, you are not alone. Let's take a deeper look at this change and how it could affect your investments.

The idea behind ESG investing is that only companies promoting environmental sustainability, low carbon emissions, green energy initiatives, and good waste management would meet the environmental sustainability aspect of ESG investing. However, the S&P 500 said that Tesla's "lack of low-carbon strategy" and "codes of business conduct" heavily factored into the decision. The S&P said that Tesla's factories produced very high levels of pollutants. Tesla ranked 22nd on last year's Toxic 100 Air Polluters Index, a list compiled by U-Mass Amherst Political Economy Research Institute. For context, ExxonMobil ranked 26th on that same list last year. Continue reading "Tesla (TSLA) Gets Booted from the ESG Index" →

ETF Investors Should Know Their Tesla Exposure

Posted on by Matt Thalman

Shares of the electric car manufacturer Tesla (TSLA) have undergone a meteoritical rise over the past few years, a move that very few investors have ever seen or experienced. Since late October 2019, Tesla has been up more than 1,680%, compared to the Vanguard S&P 500 ETF (VOO), which is up just 59% over the same timeframe. The move Tesla has made is nothing but incredible, and congratulations to all those investors who had the foresight and fortune to have owned Tesla stock, either directly or through, and some sort of fund and have benefited from the move.

However, as with all investments, what goes up, can come down. And Tesla has undoubtedly seen this story play out over time as a publicly-traded company. Several times throughout its time, including this week, it has seen massive pullbacks and corrections, of course only to go even higher longer term. But that doesn't mean another move lower, like the 36% drop during a six-week period earlier in 2021, should be dismissed by investors.

Both long and short-term focused investors need to understand that stocks of even the best companies move higher and then lower, only to move higher again. And understanding this movement and knowing what the risk of an investment is and the potential return an investment has, is extremely important can help you invest smarter. Continue reading "ETF Investors Should Know Their Tesla Exposure" →

General Motors Announcement Changes Everything

Posted on by Matt Thalman

We all know Tesla (TSLA) is a run-away train, but what if I told you General Motors (GM) could soon be not only chasing down Elon Musk but maybe passing him?

OK, all of the Tesla fanatics need to take a deep breath and calm down. The thinking that another “car” company could pass Tesla is not a negative comment against Tesla; it’s the reality that we are now living in a world where electric and other alternative energy vehicles are not “pipe” dreams but reality.

The late January announcement from General Motors that they will no longer sell internal combustion engine vehicles in the United States by 2035 is the writing on the wall that gasoline is ending and EV’s will dominate the road. In 2020 Tesla delivered 499,550 vehicles, which shows that we have demand for EVs even now. Perhaps not like the demand that GM still has for gasoline-powered vehicles. GM sold 7.7 million in 2019, down from the 8.3 million it had sold in 2018 and way off its high of just over 10 million in 2016. These are worldwide sales figures, but regardless GM sold 2.5 million vehicles in the US in 2020.

What’s the point of these figures? Continue reading "General Motors Announcement Changes Everything" →