Here's an overlay of 
MCD in yellow from 1980 to 2005 lined up to the 75% drop in MCD on the "Dollar Menu" price wars, store closings and YOY% sales decline for MCD back in 2002. It was a disaster. Well, 
TSLA has the same 75% drop to the current low. Maybe they mimic, maybe they don't. Just interesting!
Here's theMCD chart and the part that I copied and pasted... the huge run-up and the 75% correction. I lived through the MCD collapse, as did a buddy of mine who is a broker and was buying all the way down from 50% down to 75% down and made a great fortune for his clients on the 10X rally over the next 10 years
The % rallies aren't that comparable forMCD and TSLA, but the pattern is similar to me. A global brand with a solid track record facing a short term challenge and competition and fears.
MCD in yellow from 1980 to 2005 lined up to the 75% drop in MCD on the "Dollar Menu" price wars, store closings and YOY% sales decline for MCD back in 2002. It was a disaster. Well, TSLA has the same 75% drop to the current low. Maybe they mimic, maybe they don't. Just interesting!Here's the
MCD chart and the part that I copied and pasted... the huge run-up and the 75% correction. I lived through the MCD collapse, as did a buddy of mine who is a broker and was buying all the way down from 50% down to 75% down and made a great fortune for his clients on the 10X rally over the next 10 yearsThe % rallies aren't that comparable for
MCD and TSLA, but the pattern is similar to me. A global brand with a solid track record facing a short term challenge and competition and fears.Note
Here's how similar the
MCD correction is in terms of structure and percent.I matched up the high and low so they match and the structure and timing and percentage are so similar they could be twins.
Time will tell.
There are always variables and potential news to can upend any "guess".
Hope you enjoy the unique insights and historical comparisons.
Tim
Jan 8, 2023 8:38PM EST.
TSLA 113+
Note
Earnings due this Wednesday after the close of NY trading.Update after that.
TSLA at $140+ last.Tim - January 23rd, 2023, 11:21AM EST
Note
The post-bottom action is very similar. I'll go and pull the news on
MCD's rally to see how that shaped up as it climbed steadily higher over the course of the following year. If you can remember history, you might find something that rhymes in the future the way this one did for me.
January 30, 2023 2:00PM EST
TSLA 180+ high, 170 lastNote
I added the
MCD McDonalds news items at the top and bottom for you to compare to Tesla's news at the top and the bottom. Given the worries that Tesla's inventory is rising the last two quarters as the EV subsidy expires. Why did Biden design such a short subsidy of $7500 for just a short period of time when the global supply chain was still coming off of "severely strained"? We will never know. Perhaps to keep a lid on the overall cost to the taxpayers. Perhaps that was the idea that there was a small supply of vehicles anyway, so it wouldn't cost much. Where does
TSLA stand now? Tesla is somewhere along the path of MCD's recovery after the 75% wipeout. The pattern would suggest sideways +/- 10%-15% through summer as it digests the rebound BACK TO where Elon was selling as China opened up last summer AND where Tesla reported earnings AND where
TSLA was added to the 
SPX500 Index 2 years ago. Those are all natural "supply" levels that Tesla will take some time to climb through.Cheers,
Tim
April 3, 2023 3:17PM EST
TSLA $194.44 -13.02 lastNote
The lower earnings level has held on this reaction from the higher earnings level (which stopped the advance).
The gap down from the latest earnings report is also resistance.
Wednesday, May 10, 2023 7:58AM EST
Note
Note
There are additional comments I have made on
TSLA in other time-frames than the "McDonald's Overlay". Moody's upgraded Tesla to "IG" or "Investment Grade" in March and that upgrade alerts me that institutional investors can now justify owning
TSLA shares. Even though Tesla was added to the S&P500 Index, the Moody's upgrade is more important and represents a level under which you can expect to see institutional buying (accumulation). Just my 2 cents on the situation.
There are other comments as well based on my view as a Tesla vehicle owner and comments on FSD and software profits and profitability.
See what you think. And the chart also includes a charting technique called "Timemode" which uses ranges of price around modes as a method of defining trend duration and price projections to look for trade setups and trend strength.
Join us in "Key Hidden Levels" chat room to see what "Timemode" is saying in a variety of stocks and indexes.
Tim. 11:38AM EST 5/26/2023
Note
Getting closer to the old
MCD price action6/1/2023 2:24PM EST $208 last
Note
Finally made it back "into the range" of the
MCD pattern.6/2/2023 11:05AM EST $215+ last
Note
$280 upside target sure was close! Expect sideways chop from here on out. Hang on.Note
Here is a follow-up to the chart above (scroll up)
7/14/2023 12:21PM EST
Note
Still on track.
8/21/2023 4:53PM EST
Note
I added the lithium price movement and peak which coincided with the bottom in
TSLA shares.Note
Note
Ivan Labrie added the
MCD rally out of that bottom going forward until today and MCD compounded at more than 19% per year since that low.That would be an impressive gain from here if that overlay continues.
With Cybertruck getting closer to delivery day and production ramping up and FSD v12 also just around the corner, along with robotaxi vision announced, there are plenty of growth catalysts coming into view.
Tim 9/11/2023 9:18AM EST
Note
The overlay is right on top of the guess from early January this year.
History doesn't always repeat, but it can rhyme like this pattern has.
Tim 11/13/2023 10:39AM EST
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Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.