Tesla: The End

by JDH on March 23, 2019

Okay, perhaps it’s not exactly the end, but what do you see in this chart?

A company on the rise?

I see a company that is going in the wrong direction, fast.  Once Tesla hits $250 per share, which it may do as soon as this week (it’s dropped $10 in the last week), even the Fan Boys will probably realize that the game is up.

It’s over.

They have closed most of their stores, they are looking for “volunteers” to help deliver cars, and the cars don’t work.

Fully autonomous driving is still a dream (just do a search for Tesla crashes to see what I mean).

If you are on Twitter, do a search for the hashtag #TSLAQ and read the story.  (Q is the designation placed after a ticker symbol to indicate insolvency).

I am currently holding May $200 puts, which are obviously well out of the money, but if Tesla keeps losing $10 per week, the end is in sight.  I suspect that the big funds that hold this dog have been quietly liquidating; it will be interesting to see the holdings reports at the end of Q1 to see how much selling has happened.  A quick glance at the chart shows that volume is higher now that it was during the November/December ramp period, so obviously selling is happening.

I’m holding gold, holding pot, and staying the course.  (Unlike a Tesla car on auto pilot).

More next week.