$TSLA: Could be a long term bottom...I suspect we saw an important low form in $TSLA here. We had a series of events, after sentiment was very depressed and people were focusing on share buy backs as a possible solution to $TSLA's woes, worrying about '$TWTR related overhang' and demand falling in China / price cuts, etc.
We heard about:
Soros building a stake and backing the company
Munger warming up to $TSLA
FSD no longer beta, available to everyone who requests it as of today
Talk about investing in a new Gigafactory in Korea (which happens to have a free trade agreement with India)
Talk about investing in lithium mining or acquiring a stake in some mining firm
This might help support the stock long term here, as it's clear Elon Musk is still investing for growth, and not focusing on returning cash to shareholders (which would be something an ex-growth company would do).
The solar business is starting to do well, and the 'inflation reduction act' is likely to help it gain more traction. Valuation has come down substantially, and the stock is down a lot, tagging monthly low volume support, near the down trend target from the same timeframe. With the last CPI report showing inflation is coming down, Biden approving one more oil export terminal, as well as recession risk being recognized by the Fed if they keep hiking aggressively I suspect we can get a substantially rally out of this juncture, and maybe even a long term bottom.
I've initiated a long term position, after trying to capture a bottom recently, but selling before going lower. I was away from the stock since Elon sold shares to 'pay his fair share of taxes' after doubling from $600 or so when I had last bought it. Going forward, we need to see a basing pattern form, and pay close attention to fundamental catalysts to give us post pattern confirmation that the thesis here is correct. Currently, reward to risk and probability favor getting involved again, big time.
As a sidenote: Happy Thanksgiving to those who celebrate it!
Cheers,
Ivan Labrie.
