A ‘Recall” Tesla Can’t Afford

Tesla™ reported earnings that have been reported as “Beating!” on nearly every metric that’s important to Wall Street (aka the estimates).

However, something seems to have gotten under-the-hood of “Tesla the Stock” that is causing many to recall their prior enthusiasm for why it was worth more than all other car companies combined via delivering a few hundred thousand cars per quarter needing regulatory tax selling gimmickry and accounting to barely break even -vs- the 10’s of millions all the others deliver year after year – at a reasonable profit.

Here’s what’s being recalled via my analysis, rather than that of the innate, vapid, bandwagon, pom-pom cheering sections (did I forget any?) known as the mainstream business/financial media…

The Fed called – and they want their QE (quantitative easing) policy back.

Can you say, “Uh-Oh?”

The following tells all one needs to understand, because if all the pom-pom players were correct? Below should not be happening. To wit:

(Chart Source)

By my best attempt at “napkin math.” The above represents not only around a 30% loss from the highs in and around November (Funny how that coincides precisely with the Fed announcing they were going to do what they announced yesterday, but I digress.) but also puts the company solidly in Bear Market status.

If it goes any lower? The above tells the tale where possibilities start becoming probabilities.

But then again, what do I know.

© 2022 Mark St.Cyr

Note: This is not trading or investing advice of any sort. This commentary is for “big picture” discussion purposes only. Please read, or re-read the “About This Site” page for any questions or clarifications.