How Elon Musk Is Turning Tesla into a Trading Opportunity

Tesla stock is in the most trouble its ever been in, and Elon Musk’s increasingly erratic behavior is just another sign of the company’s coming decline.

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Tesla stock is in the most trouble its ever been in, and Elon Musk’s increasingly erratic behavior is just another sign of the company’s coming decline. Fortunately, it’s also something you can turn into profits.

In the chart we’ll reveal below, you can see exactly how Tesla’s share price is losing momentum and the price level we expect it to plunge below.

teslaMusk was truly a visionary entrepreneur and created companies in what can only be described as the coolest of the cool. From Tesla Inc.’s (NASDAQ: TSLA) electric cars and batteries, to SolarCity’s renewable clean energy, to Space-X’s reusable rockets and the mission to Mars, who could not envision comic books with him as the hero?

But then the real world came knocking. Production snags, exploding cars, and missed earnings were just the scratching the surface of what is wrong with a company that may just be a house of cards ready to fall.

In fact, Musk’s latest antics might simply be a distraction from the very serious problems Tesla stock faces right now.

Here’s why Musk might be in over his head – and how you can turn that into profits…

The Bears Might Finally Be Right About Tesla

Elon Musk has become a sideshow act, but Tesla is facing real financial jeopardy.

As smart as he is, Musk cannot keep out of the headlines, let alone stay out of trouble with the authorities. Smoking pot during an interview or defaming one of the rescuers of the boys in the cave in Thailand might make investors a little uncomfortable. But Musk’s tweets have put him in legal jeopardy.

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The U.S. Securities and Exchange Commission was not amused with his unfounded claim that the company would go private at $420 a share, and it took action. Now Musk must have lawyer vet and approve his tweets before sending them. So far, he hasn’t listened, creating a new showdown with America’s securities regulator.

That’s some serious grief, but Money Morning Capital Wave Strategist Shah Gilani sees a few things that are more immediately troubling for the company.

For example, Tesla was on the hook for $920 million on a convertible bond it hoped investors would convert to shares of stock. The conversion price only made sense if shares traded above $359, but they were about $60 below that level on the March 1 conversion date.

That was quite a hit to the company’s coffers. In fact, the payout to convert the bonds was about a quarter of all the cash they had on hand. And cash flow has been a perennial problem for Tesla, especially as prices on cars have been cut twice in the past six months.

But there is so much more. Sales are way down since the tax credits buyers relied on were cut in half to $3,750 in January. They’ll run out completely by mid-summer, and the company already laid off thousands of workers.

The fundamentals are downright scary too. The current trailing price/earnings ratio is -47.7. Income per employee is negative $20,000. It’s no wonder Morgan Stanley (NYSE: MS) cut its price target from $260 to $240 on Monday.

Think about that for a moment. These are price targets for a year out, and the stock closed Tuesday at $272.31. Morgan Stanley isn’t alone either. Thirty-five percent of analysts covering Tesla give it a “Sell” or “Underweight” rating.

Considering Tesla, a company that shipped 100,000 cars, was recently valued more than General Motors Co. (NYSE: GM), which shipped 9.6 million cars and trucks in 2017, we can see where the market got way ahead of itself here.

Remember back in the Internet bubble days, when travel agent Priceline.com, which has since been refocused as Booking Holdings Inc. (NASDAQ: BKNG), was valued at more than all the airlines combined? It did not end well for Priceline at the time, as the stock lost 99% of its value.

Seasoned investors do not forget things like this. And the sentiment surrounding Tesla and its CEO are starting to chase new investors away.

The technical indicators agree, too. The chart below shows the choppy trading we’ve seen over the past two years, but as it went mostly sideways, money fled en masse. The indicator at the bottom of the chart is called on-balance volume, and it measures how many shares change hands when the price is going up and when it is going down. More volume on up days suggests money flowing into the stock.

As we can see here, money has been draining away for much of the two years shown. That means supply for shares is greater than demand. And if support at $251 is broken, you can bet that the sellers will flood the market, falling all over themselves to get out.

Take a look…

Tesla Bioweapon Defense Mode With Memory, Smart Powerwall Storm Watch, & Tesla’s Software …

A few weeks ago, a Rich Stefani tweeted something to Elon Musk. Highlighting just how abnormal Elon Musk’s Twitter habits are — and just how …
Batteries

Published on April 9th, 2019 | by Zachary Shahan

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April 9th, 2019 by Zachary Shahan


A few weeks ago, a Rich Stefani tweeted something to Elon Musk. Highlighting just how abnormal Elon Musk’s Twitter habits are — and just how atypical Elon is — he responded to this gentleman. I use the words “abnormal” and “atypical” because Rich has just 23 followers (and has only tweeted 29 times). It’s not normal for a billionaire CEO with 25.6 million followers to care much about what people tweet his way, let alone respond to them. It’s not typical for a billionaire CEO to spend a lot of time conversing with the unwashed masses (no offense, Rich). Though, it is typical for Elon.

Anyway, this article is not about Elon’s rather special Twitter habits. There’s a great WSJ report on that. But I thought these meta matters were worth noting.

This article is, more so, about two Tesla product improvements and why they’re representative of a Tesla advantage that’s a pretty big deal. Also, I love the product improvements.

Rich’s tweet was a simple but excellent idea: make a Tesla vehicle with bioweapon defense mode remember where bioweapon defense mode was turned on — and turn it on there automatically going forward. Elon’s simple but clearly powerful response: “Will do.”

Will do

— Elon Musk (@elonmusk) March 26, 2019

More recently, a Carlo Costanzo tweeted a request to have more control over the Tesla Powerwall’s Storm Watch feature. Two days later, voila!

Holy Crap! I just posted this 2 days ago and today my #Powerwall has started entering into Storm Watch when a Thunderstorm approaches.. Absolutely AMAZING! Coincidence? maybe.. Amazing Tech? Most Definitely!

— Carlo Costanzo (@ccostan) April 9, 2019

The rapid response to good customer ideas is one thing — it’s one of the reasons some Tesla customers and fans love Tesla, and love Elon. (Note: not all customer requests get dealt with quickly, but that’s another story.)

However, another key highlight here is Tesla’s role as a software company. It can push updates like this regularly and can flexibly respond to customer desires and ideas for improvement because a big part of Tesla is “Tesla Software.” Tesla is known typically as an automaker, or a sustainable energy company, but if you took all the hardware away, Tesla could be a highly valued software company partnering with automakers and energy companies around the world. In fact, who knows, Tesla’s software solutions may end up being Tesla’s most valuable asset. (I’ll talk a bit more about this in an upcoming CleanTech Talk podcast with ARK Invest.)

These kind of “little improvements” may seem small each time there’s an improvement you don’t care much about, but when one of them tickles your fancy, it injects an excitement into your view of Tesla, and it stimulates a customer connection that is particular unique in the auto world and electricity world. Tesla loves to make its customers smile, and you see that both in interactions like the ones in the tweets above and in the kind of software solutions and fun Tesla is continuously working on.

Looking at it purely from a monetary point of view, that engineering flexibility and rapid product improvement via software is setting Tesla apart in some pretty big industries. That might be considered valuable some day.

Tags:#ElonTweets, bioweapon defense mode, Elon Musk, HEPA Filter, Tesla, Tesla Energy, Tesla HEPA Filter, Tesla Model 3, Tesla Model S, Tesla Model X, Tesla Powerwall, Tesla software, Tesla Storm Watch

About the Author

Zachary Shahan Zach is tryin’ to help society help itself (and other species). He spends most of his time here on CleanTechnica as its director and chief editor. He’s also the president of Important Media and the director/founder of EV Obsession and Solar Love. Zach is recognized globally as an electric vehicle, solar energy, and energy storage expert. He has presented about cleantech at conferences in India, the UAE, Ukraine, Poland, Germany, the Netherlands, the USA, and Canada. Zach has long-term investments in TSLA, FSLR, SPWR, SEDG, & ABB — after years of covering solar and EVs, he simply has a lot of faith in these particular companies and feels like they are good cleantech companies to invest in. But he offers no professional investment advice and would rather not be responsible for you losing money, so don’t jump to conclusions.

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Tesla is like Apple and Salesforce, but don’t buy the stock right now, analyst says

Opinion: Tesla and Elon Musk are creating a credibility problem. The note also compared Tesla to Apple Inc. AAPL, -0.30% , in the way that hardware …

Instinet initiated coverage of Tesla Inc. on Tuesday by describing the electric-car company as the Salesforce.com Inc. of the auto industry, but did not suggest buying the stock.

Instinet analyst Christopher Eberle tagged Tesla TSLA, -0.33% shares with a neutral rating, equivalent to a hold, and $300 price target. Instinet discontinued coverage of the electric-car company in February after analyst Romit Shah left the brokerage; at the time Shah left, he also had a neutral rating and $300 price target on Tesla shares.

“Similar to some of the software greats’ disruption of enterprise hardware, Tesla is a true disruptor of the automotive industry, in our view,” Instinet analysts wrote in their initiation note. “It forces legacy combustion engine behemoths to scramble to develop competing products without cannibalizing their cash flow machines—keeping them comfortably at a distinct disadvantage, similar to what Salesforce CRM, -0.95% did when it pioneered the Software-as-a-Service (SaaS) business model.”

Opinion: Tesla and Elon Musk are creating a credibility problem

The note also compared Tesla to Apple Inc. AAPL, -0.30% in the way that hardware and software are designed to be integrated from creation, as well as other prominent tech companies.

“We see similarities to Apple’s disruption of the handset market (iPhone) and liken the Supercharger network and over-the-air (OTA) software updates to the iOS and iTunes ecosystem,” the analysts wrote. “The SaaS model will flip Tesla from customer service laggard to a leader, in our view.”

“Tesla is fundamentally changing not only the way cars are built but also how they are bought and sold. To us, this is similar to what Apple did with the advent of the iPhone, Amazon AMZN, -0.76% did with books (and eventually everything), Netflix NFLX, +0.91% did with video, and Salesforce did with software.”

However, the analysts wrote that “2019 will be another volatile year for Tesla,” and explained its neutral rating by writing, “we are cautious near term, as we navigate the breakneck pace of Tesla’s global expansion.”

Analysts have grown more cautious on Tesla since the company reported disappointing quarterly deliveries last week, including three analysts decreasing their price targets Monday morning. Shares have declined 2.7% this month and are down 18.2% so far in 2019 after closing Tuesday with a 0.3% decline.

Overall, 12 of 30 analysts covering the stock consider the shares a buy, according to FactSet, while seven rate the stock a hold and 11 suggest selling the shares. The average price target is $322.29, according to FactSet, down from $339.86 at the end of February and 18.4% higher than Tuesday’s closing price of $272.31.

Jeweler who made Tesla ring for Elon Musk gets locked inside Model X

By Sven Gustafson. Ben Yang, a jeweler to the stars better known as Ben Baller, recently made a custom diamond- and ruby-encrusted Tesla ring …

Baller, the co-founder and CEO of If & Co., a Los Angeles-based maker of diamond-encrusted jewelry, detailed the incident and its aftermath in an Instagram post.

To those who been asking about an update on #Tesla. I have to say, They reached back out to me somewhat quickly as it was a weekend and by Monday they did their due diligence and allowed me to terminate my lease early without any penalties or fees out of my pocket. Thank you for that. FYI: Most leases for a Model X #P100D are $2000-$2400 a month and my lease was $1,078 a month. So it was in my best interest to keep the car as long as possible because a lease that low for a $165,000 car isn’t common. But yeah. F that I’m good. Sorry for the rant. But I got thousands of DM’s even emails about an update of my situation. I’m going to auction off the ring and donate all proceeds to charity. And again. I’m not saying I’m against Elon or Tesla. I’m only saying it’s not the car for me or my family.

A post shared by 𝖇𝖊𝖓 𝖇𝖆𝖑𝖑𝖊𝖗 (@benballer) on Apr 4, 2019 at 1:55pm PDT


Baller, a longtime fan of Tesla, said he was locked inside his Model X P100D on a recent Saturday night for 47 minutes, having initially recorded the experience via an Instagram Story. “The electricity went into low power mode with 211 miles on the battery left and my driver side door wouldn’t open,” he said later on the app. “NO doors or windows would open.” He says he was finally able to exit through the trunk. “Oh and No AC,” he added.

Dear @elonmusk

Please accept this 1 of 1 custom Diamond and Ruby #Tesla ring for being an inspiration to me and my best friend Paul. FYI both of us own @tesla Model X P100D’s and both of us appreciate what you’ve done for Americans and the 🌎 🙌🏼 pic.twitter.com/gkyscIO0Ky

— BEN BALLER™ (@BENBALLER) December 21, 2018

He later explained that he would never allow his children to get in a Tesla again. His son, London, suffers from asthma and has had to go to the emergency room 26 times in the last six years, he said, and he couldn’t afford to risk having to wait for roadside assistance while he had an attack.

Presumably as a result of the ring he made, Baller claims he was able to land a meeting with the Tesla CEO, slated for April 9, at Tesla’s headquarters. But after the incident with his Model X, he said, he received an email from Musk’s executive assistant, who said Musk would no longer be available to meet and who suggested that next time, Baller contact her directly to resolve the problem rather than posting it online.

Tesla wouldn’t comment about the incident on the record when contacted by Autoblog.

While Baller’s initial livestream of the incident drew plenty of snark on social media, Tesla has been down this road before with customers getting locked inside its vehicles. In February, a man died in horrific fashion in Florida after his Model S crashed, burst into flames and neither he nor first responders were able to open the door – that event remains under investigation.

Baller says Tesla quickly responded to him and allowed him to terminate his $1,078 per-month lease of the Model X. He plans to auction off the ring for charity. Meanwhile, Baller says he has purchased a replacement vehicle: a black Chrysler Pacifica minivan tricked out by VANkulture with a luxury interior, 22-inch wheels, lowered suspension and other enhancements. “I can be a dad and push the kids to school or be driven in this while holding down meetings,” he says.

This article originally appeared on Autoblog, the complete authority for news, reviews and car-buying research.

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Riverbridge Partners Raised 2U (TWOU) Holding by $44.58 Million; As Tesla (TSLA) Share Price …

About 875,320 shares traded or 59.28% up from the average. 2U, Inc. (NASDAQ:TWOU) has declined 17.62% since April 9, 2018 and is downtrending …

2U, Inc. (NASDAQ:TWOU) Logo

Finemark National Bank & Trust decreased its stake in Tesla Inc (TSLA) by 37.98% based on its latest 2018Q4 regulatory filing with the SEC. Finemark National Bank & Trust sold 1,033 shares as the company’s stock declined 17.97% while stock markets rallied. The institutional investor held 1,687 shares of the capital goods company at the end of 2018Q4, valued at $561,000, down from 2,720 at the end of the previous reported quarter. Finemark National Bank & Trust who had been investing in Tesla Inc for a number of months, seems to be less bullish one the $47.00 billion market cap company. The stock decreased 0.41% or $1.11 during the last trading session, reaching $272.09. About 4.82M shares traded. Tesla, Inc. (NASDAQ:TSLA) has declined 13.77% since April 9, 2018 and is downtrending. It has underperformed by 18.14% the S&P500. Some Historical TSLA News: 17/04/2018 – Tesla to Halt Production of Model 3 Cars Temporarily; 28/03/2018 – The price on Tesla’s eight-year junk bond, which matures in 2025, fell to its lowest since it was issued in August. It hit 90.8 cents late Tuesday afternoon just ahead of the Moody’s announcement, according to IHS Markit; 26/04/2018 – KC Bus Journal: Sprint parent may make big bet in mega-IPO of Tesla competitor; 15/05/2018 – Munster is also not concerned about the recent management shakeup at Tesla; 21/03/2018 – Detroit News: Source: Tesla shareholders approve Musk’s compensation; 18/04/2018 – Read Elon Musk’s latest email to employees on Tesla’s big picture:; 17/05/2018 – Elon Musk brings technology charm offensive to Los Angeles tunnel plan; 30/05/2018 – Tesla Improves Model 3’s Brakes Wirelessly, Earning Consumer Reports Approval; 04/05/2018 – Was Tesla’s Recent Earnings Call More Of A Theatrical Experience?; 17/05/2018 – Tesla may require as much as $10 billion in additional capital by 2020 to fund the company’s operations, according to Goldman Sachs

Riverbridge Partners Llc increased its stake in 2U Inc. (TWOU) by 92.51% based on its latest 2018Q4 regulatory filing with the SEC. Riverbridge Partners Llc bought 909,772 shares as the company’s stock rose 22.47% with the market. The hedge fund held 1.89 million shares of the technology company at the end of 2018Q4, valued at $94.13 million, up from 983,403 at the end of the previous reported quarter. Riverbridge Partners Llc who had been investing in 2U Inc. for a number of months, seems to be bullish on the $3.91 billion market cap company. The stock decreased 0.71% or $0.48 during the last trading session, reaching $67.19. About 875,320 shares traded or 59.28% up from the average. 2U, Inc. (NASDAQ:TWOU) has declined 17.62% since April 9, 2018 and is downtrending. It has underperformed by 21.99% the S&P500. Some Historical TWOU News: 21/05/2018 – Mark Chernis Joins 2U, Inc. as Chief Operating Officer; 03/05/2018 – 2U Sees 2018 Adj Loss/Shr 13c-Adj Loss/Shr 10c; 11/04/2018 – 2U: Harsha Mokkarala Will Become Chief Rev Officer; 03/05/2018 – 2U INC SEES FY 2018 ADJUSTED NET LOSS PER SHARE $0.13 – $0.10; 21/05/2018 – 2U, Inc. Announces Public Offering of Common Stk; 22/04/2018 – DJ 2U Inc, Inst Holders, 1Q 2018 (TWOU); 24/05/2018 – The University of Dayton School of Law and 2U, Inc. Partner to Offer An Innovative New Hybrid J.D. Program; 03/05/2018 – 2U Sees 2Q Rev $95.1M-$96.1M; 03/05/2018 – 2U INC SEES 2Q 2018 REVENUE $95.1 MLN – $96.1 MLN; 09/05/2018 – John Ellis joins 2U, Inc. as SVP, Corporate Controller and Chief Accounting Officer

More notable recent 2U, Inc. (NASDAQ:TWOU) news were published by: Benzinga.com which released: “Trilogy Education – Benzinga” on April 08, 2019, also Nasdaq.com with their article: “What Happened in the Stock Market Today – Nasdaq” published on April 08, 2019, Nasdaq.com published: “Company News For Apr 9, 2019 – Nasdaq” on April 09, 2019. More interesting news about 2U, Inc. (NASDAQ:TWOU) were released by: Benzinga.com and their article: “A Peek Into The Markets: US Stock Futures Signal Lower Start On Wall Street – Benzinga” published on April 08, 2019 as well as Benzinga.com‘s news article titled: “48 Stocks Moving In Monday’s Mid-Day Session – Benzinga” with publication date: April 08, 2019.

Riverbridge Partners Llc, which manages about $5.72 billion and $4.80B US Long portfolio, decreased its stake in Visa Inc. (NYSE:V) by 2,392 shares to 185,640 shares, valued at $24.49M in 2018Q4, according to the filing. It also reduced its holding in Lennox International Inc. (NYSE:LII) by 6,866 shares in the quarter, leaving it with 119,660 shares, and cut its stake in Tyler Technologies Inc. (NYSE:TYL).

More notable recent Tesla, Inc. (NASDAQ:TSLA) news were published by: Benzinga.com which released: “Pair Of Analysts Cut Tesla Price Targets Ahead Of Q1 Deliveries (NASDAQ:TSLA) – Benzinga” on March 25, 2019, also Streetinsider.com with their article: “Tesla (TSLA) Dismissed Dozens of Sales Staff Last Week – Bloomberg – StreetInsider.com” published on April 08, 2019, Seekingalpha.com published: “The ax falls again at Tesla – Seeking Alpha” on March 12, 2019. More interesting news about Tesla, Inc. (NASDAQ:TSLA) were released by: Benzinga.com and their article: “Lyft, Inc. (NASDAQ:LYFT), Tesla Motors, Inc. (NASDAQ:TSLA) – FreightWaves Features In The Breakout List Of High Potential And Growth Startups – Benzinga” published on April 05, 2019 as well as Benzinga.com‘s news article titled: “Tesla Motors, Inc. (NASDAQ:TSLA) – Researchers Trick Tesla Autopilot Using Stickers On The Road – Benzinga” with publication date: April 03, 2019.

Analysts await Tesla, Inc. (NASDAQ:TSLA) to report earnings on May, 1. They expect $-0.30 EPS, up 92.84% or $3.89 from last year’s $-4.19 per share. After $0.78 actual EPS reported by Tesla, Inc. for the previous quarter, Wall Street now forecasts -138.46% negative EPS growth.

Finemark National Bank & Trust, which manages about $1.47 billion US Long portfolio, upped its stake in Invesco Exchng Traded Fd Tr by 62,420 shares to 173,451 shares, valued at $8.09M in 2018Q4, according to the filing. It also increased its holding in Microsoft Corp (NASDAQ:MSFT) by 7,474 shares in the quarter, for a total of 280,304 shares, and has risen its stake in Enbridge Inc (NYSE:ENB).

Since October 29, 2018, it had 1 insider buy, and 13 insider sales for $20.33 million activity. 15,000 Tesla, Inc. (NASDAQ:TSLA) shares with value of $4.40 million were sold by Straubel Jeffrey B. Another trade for 3,500 shares valued at $1.20 million was made by Ahuja Deepak on Wednesday, November 14. RICE LINDA JOHNSON also sold $544,000 worth of Tesla, Inc. (NASDAQ:TSLA) on Tuesday, February 5. The insider Gracias Antonio J. sold 16,780 shares worth $5.84 million. On Monday, October 29 the insider Musk Elon bought $10.00 million.

Investors sentiment increased to 1.46 in Q4 2018. Its up 0.75, from 0.71 in 2018Q3. It increased, as 67 investors sold TSLA shares while 143 reduced holdings. 118 funds opened positions while 189 raised stakes. 96.91 million shares or 0.91% less from 97.80 million shares in 2018Q3 were reported. Aristeia Capital Ltd reported 8,551 shares. 70,800 were accumulated by Quantitative Invest Mngmt Ltd Liability Company. Raymond James Fincl Advsr reported 29,112 shares stake. 11,182 were accumulated by Private Advisor Group Inc Limited Co. Essex Financial Inc invested 0.35% in Tesla, Inc. (NASDAQ:TSLA). Kansas-based Creative Planning has invested 0.07% in Tesla, Inc. (NASDAQ:TSLA). Westpac Bk accumulated 9,110 shares or 0% of the stock. Ubs Asset Management Americas reported 0% in Tesla, Inc. (NASDAQ:TSLA). Rocky Mountain Advisers Lc holds 375 shares or 0.48% of its portfolio. Parallax Volatility Advisers Ltd Partnership reported 9,443 shares or 0% of all its holdings. Willingdon Wealth Mgmt, a North Carolina-based fund reported 18 shares. Benjamin F Edwards And has 0.02% invested in Tesla, Inc. (NASDAQ:TSLA). Grimes And Co holds 0.04% in Tesla, Inc. (NASDAQ:TSLA) or 1,171 shares. Group Inc One Trading Lp has invested 0.03% of its portfolio in Tesla, Inc. (NASDAQ:TSLA). Ibm Retirement Fund reported 2,843 shares stake.

Tesla, Inc. (NASDAQ:TSLA) Institutional Positions Chart

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