Here’s the latest on Tesla ($TSLA) (June 03, 2022)TSLA
We’re looking at Tesla ( NASDAQ: TSLA ) again. Yesterday this stock rallied up here. The stock had been going up, traded down for a couple of days like that, and then yesterday it pushed higher and the volume was pretty good. Pretty good volume here yesterday and it pushed to a new high, relative to all this stuff, it almost hit 800.00. I looked at that and I would think the stock would continue higher because of this big rally. Then just a couple of days of kind of a mild pullback, not a big deal at all. And then we get a gap down and a really, really pretty strong close.
My suspicion was that the stock would continue higher but it’s like, there I go thinking again, and the stock gapped down, it didn’t even make a dent as far as any upside. So now we’ve got this situation where I am looking at this as kind of a bull trap. Everybody is looking to always buy Tesla ( NASDAQ: TSLA ) on the cheap and this and that. Tesla ( NASDAQ: TSLA ) was cheap back here.
I am not bearish or bullish on this stock. Is the stock overvalued? Well, of course, it is but it has been overvalued forever. So the fundamentals actually don’t really matter. If you are looking at the fundamentals on a stock like this, then good look to you. You have to really trade this thing technically and right now, as I see the weekly chart, it is kind of chopping around here. But in my view, there is no question that the stock is ultimately going to continue lower. I don’t see a big catalyst for the stock to be moving higher.
Elon Musk has pretty much said that business is not good. If you read the news about him you know he is cutting 10 percent of the workforce. If you don’t want to work in the office then don’t show up you’re done. I feel bad, I feel like we’re going to be in a really bad recession (me too), and auto sales aren’t going great, they’re not going to be so great. So he is really forecast by Twitter, the usual mode of communication for Elon, he has really forecasted that things are not really good. And so why would there be some big money that is aggressively buying this stock? I don’t see it.
I am looking at this as a stock that is more than likely going lower. That is the way I am trading it, though I got a really, really crappy entry on my bearish trade. But I will stick with it because it is still in my risk parameters. I would not be buying Tesla ( NASDAQ: TSLA ). If the stock runs back above 800.00 then if you are short the stock you can’t take more than a 15 percent loss on that short, I wouldn’t even take much.
Just be ready for Tesla ( NASDAQ: TSLA ) to go lower, that’s all I will say. And don’t be a sucker, don’t be a bag holder, and just own this stock and ride it down into the ground. This is not going to be the next winner, it’s been a winner. I saw a picture of Mickey Mantle today. I am not going to tell you where I was standing, but I saw a picture of Mickey Mantle and I remember thinking that that guy is one of the greats. Okay, fine, but if he was still with us today I wouldn’t want him on my baseball team because he was awesome then, not so much now.
And so what you want to be doing is get rid of your Tesla ( NASDAQ: TSLA ) fetish here and start looking for the next winners. Not the last winners hoping they will lead you to riches and fame and all of that. That is just unimaginative; I just wouldn’t be holding this stock, I will put it that way.