• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 8 hours Indonesia Stands Up to China. Will Japan Help?
  • 1 hour We're freezing! Isn't it great? The carbon tax must be working!
  • 58 mins Shale Oil Fiasco
  • 15 hours Might be Time for NG Producers to Find New Career
  • 2 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 18 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 12 hours Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 8 hours Beijing Must Face Reality That Taiwan is Independent
  • 14 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 19 hours China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 1 day US Shale: Technology
  • 2 days Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
Alt Text

The Oil Industry’s Radioactive Secret

An investigative journalist has written…

Alt Text

Goldman: China Coronavirus Could Push Oil Down By $3

The outbreak of a coronavirus…

Editorial Dept

Editorial Dept

More Info

Premium Content

Headline Hysteria Suggests Tesla Reversal

If you are a regular reader of my offerings, you will be aware that I have been bearish on Tesla (TSLA) for quite a while. On March 1st, I wrote that the staffing cuts and other cost-cutting moves there could be a good sign in the long-term, but would prove problematic in the short-term, making the stock a sell. Then, three weeks ago, when the stock was jumping on news of a massive capital raise, I sounded a note of caution again. The stock is now 35% lower than when I made that initial call and, from a trading perspective at least, it is time to at least cut, if not reverse, short positions.

(Click to enlarge)

The fundamental problems that I highlighted in those two pieces, most notably the company’s inability to consistently turn a profit, haven’t changed, but that isn’t the point. What has changed is that everyone is now jumping ship, even those that remained bullish for a while.

This week, calls from a couple of those disappointed bulls made the headlines. The first came from Morgan Stanley whose analyst “worst-case scenario” saw TSLA dropping to $10. Then came Citi, whose $36 bear case would have been shocking were it not for what came before. Those are certainly sensational numbers, but that is the problem.

Some may think that the inclusion of those numbers in the reports are an example of “hell hath no fury…” or are cynical attempts to garner publicity. I guess there could be some truth…




Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play