Short TSLA with a price target of $285
I expect TSLA to go to 285 range and then ultimately form a H&S pattern (offering up a wide range of trading opportunities in the short to medium term). I am long term bearish on this stock given the well documented execution and valuation issues.
Additionally, it is important to understand that as the Fed begins to tighten and the "free/cheap money" well dries up, stocks like TSLA are going to be hammered.
Also, based on pure logic (not least fundamentals) there is no way TSLA should be more valuable than GM or Ford. The market is beginning to realize just how absurd this situation is and is beginning to make amends. TSLA makes great cars, but the company is ridiculously over-priced, which didn't matter as much in a near zero interest rate environment, but will bite in a an environment of relative Fed hawkishness.
Additionally, it is important to understand that as the Fed begins to tighten and the "free/cheap money" well dries up, stocks like TSLA are going to be hammered.
Also, based on pure logic (not least fundamentals) there is no way TSLA should be more valuable than GM or Ford. The market is beginning to realize just how absurd this situation is and is beginning to make amends. TSLA makes great cars, but the company is ridiculously over-priced, which didn't matter as much in a near zero interest rate environment, but will bite in a an environment of relative Fed hawkishness.
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