TESLA – Likely To Continue Its Downward Spiral!

Elon Musk Is His Own Worst Enemy At This Stage!

And That Of Tesla!
How To Play Tesla Stock Now!

by Ian Harvey

July 25, 2018

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Tesla Inc. (NASDAQ:TSLA) founded in 2003, is an American multinational corporation based in Palo Alto, California, that specializes in electric vehicles, lithium-ion battery energy storage and solar panel manufacturing.

However, the stated goals of Elon Musk have fallen short in most instances! Success is yet to transpire in nearly all aspects of Tesla – but as each failure is achieved, there is a spin-off that there is imminent success – and the investor, as well as analysts, keep coming back for more – go figure!

There are a great many disturbing situations relating to Musk and Tesla causing the stock price to drop…..here are some…..

  • One of the latest is the PR stunt with the rescue of the Thai soccer team, and then
  • the Twitter blow-up with the hero British cave diver – calling him a “pedo”,
  • and Musk’s  Twitter  bizarre tweets continue unabated.
  • In May, in an analyst conference call, Musk was quite rude; dismissing questions about Tesla’s diminishing capital and other dubious claims with name-calling. “Excuse me,” Musk said. “Next. Boring boneheaded questions are not cool.”
  • Another such piece of nonsense occurred on April Fool’s Day; with a tweet in which Musk announced Tesla had gone bankrupt.
  • And another tweet – due to workplace safety -- “Not sure we actually need a building,” he tweeted. Meanwhile, he was “back to sleeping at the factory” to hit production deadlines. REALLY!!

As to Tesla short-comings……

  • Deadlines are rarely met and production consistently falls short of expectations.
  • The company chews through $500,000 per hour, according to a report in November, 2017 by Bloomberg.
  • Top executives are leaving.
  • In March, a Tesla driver was killed while test-driving an autopiloted Model X, the impact decimating half the car.
  • Then in May, two teenagers were killed in a Tesla Model S after its battery caught fire following a crash.
  • A similar accident claimed a driver two months prior, with California firefighters reporting that the Tesla battery kept reigniting days after the smash.
  • SpaceX continues to be a failure.
  • Hyperloop proposal – plenty of criticism as being another “Musk Hustle”.

And the latest……

Tesla took another financial hit on Monday, with shares in the company dropping almost 5% after the electric automaker was reported to have asked some US suppliers to return payments to the money-losing company.

BUT…..

Analysts keep keeping back for more punishment; with several Wall St. analysts giving a vote of confidence …..

…..with Baird analyst Ben Kallo stating that the recent selloff of Tesla stock is a huge buying opportunity for investors, and

….. Morgan Stanley analyst Adam Jonas stated that the “push and pull” of media reports on Tesla has added a layer of risk to evaluating the electric car maker in the short term. Nevertheless, Jonas stated that he believes Tesla is currently trading at fair value, adding that higher average selling prices on the company’s vehicles could prove to be the margin booster that Tesla has been waiting on.

…..And then, Consumer Edge Research senior analyst James Albertine states that regardless of negative reports about the company, Tesla still appears to be on its way to profitability.

......When will it dawn on them that there is a big problem with Tesla and Musk!

Earnings Coming Up…..

Tesla stock will likely continue to exhibit volatility as the company approaches the date for its Q2 2018 financial results and earnings call, which is set to be held after market close on Wednesday, August 1, 2018.

Consider Taking This Action…..

OPTION TRADE TO CONSIDER: Buy TSLA AUG 17 2018 275.000 PUT at approximately $10.00.

Sell price is left to your own judgment.

Caution….

It may be wise to exit this trade before the report as Tesla appears incredibly determined to prove that it could be profitable this third quarter despite the downward pressure. Tesla is continuing its push to ramp Model 3 production and deliveries through the third quarter. With initiatives such as test drive programs for the Model 3, a 5-minute Sign & Drive system, as well as the possibility of adopting a digital contract when purchasing its cars.

But, then again -- another "hustle"??


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


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