Thursday, 5 May 2016

TSLA - post earnings depression

Whilst the main market saw a day of minor chop, there was notable weakness in Tesla (TSLA), which settled lower for a third consecutive day, by a very significant -5.0% @ $211.34. Next support is the 200/195 zone, below that.. the $150/140s, which do seem probable this summer.

TSLA, daily

TSLA, monthly


TSLA is really struggling as Mr Market is increasingly impatient at the notion that vehicle production is still going to take a few more years to reach 300-500k vehicles a year.

A further capital injection seems a given... and that will likely come via a share issue.

However, if the main market does eventually break to the sp'1600/1500s this summer/autumn, such a share issue will be off the menu until 2017.. at which point Mr Musk will be asking for new money from almost anyone.

I really like the company, highly innovative, an industry leader, with a superb product line, but TSLA just doesn't make money.. and won't likely be making any significant profit for another 4-5 years.