TSLA stock is seeing lots of drama in the wake of Elon Musk breaking away from the elites. I told Premium members of GuerillaStockTrading that Elon Musk and Tesla would increasingly be coming under attack more than a month ago. Oh how right I was. Here’s the latest tit-for-tat drama in TSLA stock.
Tesla CEO Elon Musk says latest Cybertruck prototype is ‘awesome’
Tesla CEO Elon Musk said via Twitter: “Been driving latest Cybertruck prototype around Giga Texas. It’s awesome!” Source: https://twitter.com/elonmusk/status/1486143850368360448
GLJ accuses Tesla analysts of ‘intentionally sandbagging’ Q4 numbers
On January 25, 2022, GLJ Research analyst Gordon Johnson said that sell-side analysts are “intentionally sandbagging” estimates for Tesla’s Q4 in order to say the company beat expectations, thereby justifying their “silly” price targets. Johnson keeps his long-standing Sell rating on Tesla shares with a $67 price target. In addition, the Shanghai boat data, which indicates the company’s export demand, “is off to a rocky start,” Johnson tells investors in a research note. He notes that over the first 24 days of Q1, there are only four boats that have left Tesla’s Shanghai port destined for Europe versus 11 boats that left over the same timeframe in Q4. The analyst believes Tesla’s 2022 “will be defined by problems” and he sees elevated risk of missed growth targets.
Tesla files counterclaim against JPMorgan in warrants lawsuit, Bloomberg says
On January 24, 2022, it was reported that Tesla (TSLA) is counter-suing JPMorgan (JPM) over a lawsuit the bank filed last year looking for a $162M payment in regards to a series of stock warrant transactions, Bloomberg’s Chris Dolmetsch reports, citing the automaker’s complaint in federal court. Tesla said the bank took advantage of an August 2018 tweet from CEO Elon Musk to decrease the strike price of over 1.9M warrants it acquired on Tesla shares in 2014. Source: https://www.bloomberg.com/news/articles/2022-01-24/tesla-files-countersuit-against-jpmorgan-in-warrants-dispute
Charged: Tesla investors want Musk to repay $13B for SolarCity deal
On January 24, 2022, TheFly reported that Tesla (TSLA) shareholders have urged a judge at an ongoing trial to find Elon Musk coerced the company’s board into a deal for SolarCity in 2016 and have asked for Musk to be ordered to pay $13B, Tom Hals of Reuters reported. “This case has always been about whether the acquisition of SolarCity was a rescue from financial distress, a bailout, orchestrated by Elon Musk,” Randy Baron, an attorney for shareholders, told the Zoom hearing, according to Reuters. The lawsuit alleges Musk strong-armed Tesla’s board to approving the deal for SolarCity, a company Musk was the top shareholder in. Musk has countered this claim by arguing it was part of a decade-old plan to vertically integrate Tesla to transform energy generation and consumption. Source: https://www.thefly.com/permalinks/entry.php/id3445308/-Charged-Tesla-investors-want-Musk-to-repay-B-for-SolarCity-deal
Tesla 2022-23 estimates raised at Jefferies ahead of Q4 report
On January 20, 2022, Jefferies analyst Philippe Houchois raised his 2022-23 estimates for Tesla by 12% and 6%, respectively, on higher growth and marginally higher volume-driven gross margin ahead of the company’s Q4 report due on January 26. He views the Q4 results as “critical” to validate, or not, the Q3 profit dynamics that could see Tesla carve out meaningful share from legacy OEMs and claim a “disproportionate share of the industry profit pool,” Houchois tells investors. Tesla CEO Elon Musk has promised an updated product plan along with the Q4 report, which should clarify widely rumored delays to Cybertruck, but what he views as “more critical” will be the roadmap to a smaller Tesla which, if confirmed, will underpin the drive to affordability. Houchois maintains a Buy rating and $1,400 price target on Tesla shares.
Tesla will continue exceeding profitability expectations, says Piper Sandler
On January 19, 2022, Piper Sandler analyst Alexander Potter raised estimates for Tesla to reflect the “better-than-expected” Q4 deliveries as well as a higher estimate for deliveries in 2022. He now expects 1.53M units delivered in 2022, up from 1.38M previously. Potter is also nudging his 2022 margin expectations higher. With strong volume and a rising contribution from software, Tesla will continue exceeding profitability expectations, Potter tells investors in a research note. He keeps an Overweight rating on the shares with a $1,300 price target.
Tesla asked law firm to fire attorney hired from SEC, WSJ reports
On Jauary 18, 2022, Tesla has begun taking steps to replace its main law firm Cooley after it refused to fire one of its attorneys, Rebecca Elliot, Justin Scheck, and Drew FitzGerald of The Wall Street Journal reports, citing people familiar with the matter. The targeted attorney was a formed U.S. Securities and Exchange Commission, SEC, lawyer. At Cooley, the lawyer has no involvement in Tesla, but at the SEC, the attorney had interviewed Musk during the agency’s investigation of Musk’s 2018 tweet claiming, wrongly, to have secured funds to potentially make the company go private. The probe resulted in Musk agreeing to resign as chairman and pay a $20M fine. Cooley refused to fire the attorney and, since early December, Tesla has begun taking steps to replace Cooley or add additional counsel, the Journal reports, citing legal documents. Musk’s SpaceX has also stopped using Cooley for regulatory work, people familiar with the matter told the Journal. Source: https://www.wsj.com/articles/elon-musks-tesla-asked-law-firm-to-fire-associate-hired-from-sec-11642265007?mod=pls_whats_news_us_business_f
Tesla pushes Cybertruck production start to early 2023, Reuters reports
On January 13, 2022, Reuters reported that Tesla intends to start initial production of its Cybertruck by the end of the first quarter of 2023, delaying its plan to start production later in 2020, Reuters’ Hyunjoo Jin reports, citing a person familiar with the matter. Source: https://www.reuters.com/technology/exclusive-tesla-delays-initial-production-cybertruck-early-2023-source-2022-01-13/
California’s DMV ‘revisiting’ Tesla’s self-driving beta, LA Times reports
On January 12, 2022, California’s DMV is “revisiting” Tesla’s Full Self-Driving beta, which previously didn’t require oversight under its autonomous car rules, after being confronted with dozens of viral videos showing the technology driving the car into dangerous situations and a letter of concern from a key state legislator, The LA Times’ Russ Mitchell reports. “Recent software updates, videos showing dangerous use of that technology, open investigations by the National Highway Traffic Safety Administration, and the opinions of other experts in this space” prompted the reevaluation, the DMV said in a letter Monday to state Sen. Lena Gonzalez, chair of the Senate’s transportation committee. Source: https://www.latimes.com/business/story/2022-01-11/dmv-message-to-legislatures-ontesla-full-self-driving-safety-its-not-our-job
📺 Tesla Stock 🔥 HUGE MOVE COMING! Q4 2021 EARNINGS!
[embedyt] https://www.youtube.com/watch?v=exFW8d1FI5A[/embedyt]📉 TSLA Stock Technical Analysis
The long term trend is neutral, but the short term trend is negative. TSLA is one of the better performing stocks in the Automobiles industry, it outperforms 75% of 28 stocks in the same industry. TSLA is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range. Prices have been falling strongly lately, it is better to avoid new long positions here.
There is support at 918.39 from a horizontal line in the weekly time frame. There is also support at 899.93 from a horizontal line in the daily time frame. Finally, there is support at 873.23 from a trend line in the weekly time frame.
There is a resistance zone ranging from 984.12 to 1006.65. There is also a resistance zone ranging from 1044.78 to 1049.62. These zones are formed by a combination of multiple trend lines and important moving averages in multiple time frames. Finally, there is resistance at 1229.91 from a horizontal line in the daily time frame.
The technical rating of TSLA is bad and it also does not present a quality setup at the moment. TSLA stock has a Setup Rating of 2 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when TSLA stock consolidates and has a Setup Rating of 8 or higher.
