TSLA has entered a sideways trend

1 Mar 2023

After rising in a definable band since January 2023, TSLA has entered into a sideway trade. My suspicion is that investors are pausing while they await the investor day news to determine how much any announcements will affect their assessed valuations. If news is intriguing we'll see a pop back up. If it's less than anticipated, we'll see a drop below the current range.

Either way, Tesla has made some headlines in recent days with the addition of the subscriber model for Supercharging non-Tesla EVs very similar to the model used by EVgo, and others in the space, the opening of the Supercharger network and additional Federal funding for infrastructure buildout (from a pool of $7.5 billion that is available in grants with the inclusion of the Magic Dock) is interesting, and when adding in rumors of the new platform into the mix, investors have a lot to consider and this pause in trend will grant some time to re-evaluate the effect such changes might have... at least until the Investor Day news is made public tonight at 4PM ET / 1PM PT from the company’s Austin, Texas-based Gigafactory where it is being livestreamed on YouTube and Twitter.

My analysis for the name hasn't changed, and the 2-year, 5-year, and 10-year outlook is still solidly bullish.

2 Mar 2023

Catatan

Investor Day was heavy on goals, but didn't include the announcement many investors were anticipating on next gen platform specifics -- which we're seeing reflected in the trading today while the market overall is down and dragging TSLA with it. The new platform's modularized build was on display last night, and the efficiencies gained in manufacturing will both speed up and cut down time needed to put new cars out the door. The next production platform will increase value substantially, though we still have too little info available to price the increase accurately.

25 Apr 2023

Catatan

The recent 2023Q1 earnings release did not have a significant impact on investor confidence, and we've seen the most active support level again at $164. These next two weeks will be critical for TSLA's valuation in the macro world, as automotive purchases depend heavily on available financing.

From the earnings call, my key takeaways were related to the "Next Gen Platform" and comments on halving the factory floor footprint. This cost-cutting measure is vital in allowing production levels to increase by utilizing existing gigafactory spaces through refits, without the need to build more factories at the same rate of CapEx as seen in the past.

Another major takeaway was the decrease in material costs, coinciding with TSLA's price cuts. This will allow the company to take advantage of their developed verticals and their efficient strategy.