Hey! Following up to our previous idea in which we noted that TSLA was stuck in a descending channel and continuing to trend down as Elon' Musk's impending possible takeover of Twitter hangs in the balance alongside TSLA's recent backdrop of production issues in China noting that it reduced it's vehicle production at it's Shanghai factory thanks to parts shortages in part thanks to a nearby supplier dealing with Covid lockdown. On top of that TSLA had to shut down production at it's Shanghai factory last month as local authorities imposed serious lockdowns on most of the population to help halt and prevent the spread of Covid after the first quarters surges.
Anyway stay tuned and leave a like and follow for more postings but things isn't a bad time to buy in, I wouldn't say go heavy let alone FOMO but it definitely isn't a bad choice all considered. TSLA has been hit just like every other major company that has been impacted by Inflation rates, hikes, Ukraine, etc. It's been tough on everyone but as always I'm optimistic for a real good summer. Thanks and have a good one.
~ Rock
- TSLA was shut down for 22 days before being allowed to restart production on April 19 using a closed-loop shift in which workers would sleep at the factory in order to reduce worker movements into the city to avoid any further Covid lockdowns. Earlier most analyst were expecting that it would take Tesla a while to ramp it's vehicle production back up to it's pre-lockdown levels however it was noted that earlier TSLA was making progress and aiming to ramp up it's production up to that 2,600 vehicles a day benchmark by May 16. At the time the goal was perceived was very difficult and seemingly impossible to some. However with today being May 24th, the automaker was already noted that it will be ramping up it's daily output to 2,600 units as soon as Tuesday which is today funny enough. At a weekly output of 16,000 vehicles that brings Tesla's Shanghai Megafactory to new records producing an annualized capacity of more than 800,000 electric vehicles which sets Tesla up for a good output in june even though the automaker during it's Shanghai shutdown likely lost out on more than roughly 50-60,000 vehicles.
- Tesla also seems to be going over and out as always with it's standards doing so much as to even put it's Shanghai workers in a closed loop system using makeshift dorms, disused factories and even a military training camp. Basically there are two batches of staff that will be joined together at the campsite and factories close to the plant where they will live and shower. A shuttle will be provided everyday from the temporary sites to the manufacturing sites forming basically a closed loop system which government officials have promoted to help restart industry while limiting the risk of further covid spread.
- The reason I note a reversal could possibly be incoming is that within the next few months as July's earnings report nears we will likely see some positive reversal as investors get keen on positive results. Not to mention as it is TSLA always does the most going beyond and over for it's results often surprising investors much like it did with April's revenue posting nearly beating analyst estimates by close to a billion. Now I understand it's seemingly impossible to claim a reversal when we're practically in a bull market but I'm putting this idea down for those smart enough to read it and understand how things work long term. You want to buy during the bear market, not during the rally, by then it's too late.
- With a quick look at technical we are still in that descending channel so I'm not exactly coming in with IMMEDIATE REVERSAL!
But you can clearly see how we keep bouncing off that lower trend line and more than likely one of these times we're gonna get a rather hard bounce and that'll result in our true reversal point. More than likely we'll see our reversal point within the month unless the Fed can't combat Inflation alongside the Ukraine war definitely being another stress on the market as well.
Anyway stay tuned and leave a like and follow for more postings but things isn't a bad time to buy in, I wouldn't say go heavy let alone FOMO but it definitely isn't a bad choice all considered. TSLA has been hit just like every other major company that has been impacted by Inflation rates, hikes, Ukraine, etc. It's been tough on everyone but as always I'm optimistic for a real good summer. Thanks and have a good one.
~ Rock
