Over the past seven years, I’ve written many positive things about Tesla (NASDAQ:TSLA). There is an entire subculture, however, which actually despises the company and, even moreso, its leader, Elon Musk (I almost typed “founder,” but as Jobs did with Pixar, he didn’t actually start the place – he just bought it when it was cheap and going nowhere).
Anyway, there are plenty of concepts and people I have no trouble bashing, but I’ve never joined the TSLA hate-fest. Those who have, however, are probably delighted at this morning’s pre-market action:
The reason for the slump – it’s off about 33% since September 2017 – is simple. The cars just aren’t selling. The company is issuing all kinds of complex-sounding reasons why the numbers are down, but the chart tells the story better than any press release:
As for the longer-term chart, it isn’t an especially easy chart to read, but it seems to me that a failure of $242 (which is quite a ways below, even with the selloff this morning) would pretty much send things into a tailspin. I’ve read some capitalization information about the company, and on the surface it certainly sounds, shall we say, precarious, if not a bomb waiting to explode.
