Long Term Outlook for Tesla
Long term I think Tesla will revert to its long term trend line. Although in the short term it looks like TSLA is knife falling into a potential support zone and a point which would create a nice downtrend channel. There is also a gap fill upside opportunity at $265 which TSLA could bounce up to when it reverses.
Falling sub $100 Tesla looks like it would be quite a great value. I think the automobile sector has a lot of headwinds. Since the pandemic a car shortage occurred sending the Manheim Used Car index from 130 to 230, which it is now contracting. This lack of supply combined with low interest rates were strong tailwinds to Tesla over the last several years. Now both those previous tailwinds are strong headwinds with used car prices coming down as supply increases and much higher interest rates.
Also their new Tesla Semi sales could be underwhelming. It seems the semi is only designed to carry 10,000lbs or 5 tons which is relatively low. Also it would take a extremely long time to charge unless at specific Tesla semi charging stations. It seems like this may not be very practical for the majority of the trucking industry.
Falling sub $100 Tesla looks like it would be quite a great value. I think the automobile sector has a lot of headwinds. Since the pandemic a car shortage occurred sending the Manheim Used Car index from 130 to 230, which it is now contracting. This lack of supply combined with low interest rates were strong tailwinds to Tesla over the last several years. Now both those previous tailwinds are strong headwinds with used car prices coming down as supply increases and much higher interest rates.
Also their new Tesla Semi sales could be underwhelming. It seems the semi is only designed to carry 10,000lbs or 5 tons which is relatively low. Also it would take a extremely long time to charge unless at specific Tesla semi charging stations. It seems like this may not be very practical for the majority of the trucking industry.
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