$TSLA: Held the S&P500 inclusion level

25 juin 2022

TSLA has a bottom signal in the daily here, I'm long as of yesterday, time and price target is shown in yellow. Until the next earnings report, price might glide higher. Considering the TWTR merger, risk of Elon needing to sell more shares is a scary but not impossible bearish catalyst that could rain in the bull's parade soon. Partnering with a PE firm would be a safer bet for TSLA shareholder's cardiac health, but it's not yet clear what route Elon will go with yet. Earnings might not look too great this quarter, considering Elon's recent sayings about new factories still being a source of losses for the company (clearly gonna be a negative factor until they produce at full capacity, not a demand problem yet). Also have to factor in risk from recent down time in Shanghai due to lock downs and potential impact of the economy on sales with rising inflation and fuel prices affecting consumers. This last point might be what Elon talked about when referring to the economy being at risk of entering a recession soon. I'm sure that if a recession occurs, TSLA might stay sideways or go lower over time until the market bottoms. To be safe, I'll only trade the stock in the short term. I don't see a huge reward to risk trade in long term exposure to the stock here, all things considered. Long term technical targets are all reached, and price has formed a bearish trend signal in the weekly/biweekly/monthly timeframes, with only the daily trend reversing now.

Best of luck,

Ivan Labrie.