The Keystone Speculator

Tesla. It really is an episode queen company ran with a prima donna. CEO Elon Musk’s antics send TSLA stock up and down during the last few years. Over the last few months, Musk, the so-called genius by the press, got in trouble with the SEC for proclaiming on Twitter that he had a deal to market Tesla when in truth it was illusion. Intelligent people do not make such mistakes. Then he was videotaped smoking pot and drinking whiskey during an interview. There is nothing wrong with this, on your own time, but if you are a Tesla shareholder you do not want your CEO performing such antics in the public spotlight.

The electric car industry must prove itself; the jury is out. Electric vehicles are only glorified golf carts, however, the battery packs are unique. At the same time, Tesla is also involved with driverless vehicle technology. The autonomous car industry is a tale. The press hypes the technology going back couple of years daily. This is why you observe autonomous car videotape filmed on sunlit times always. The technology has a formidable task dealing with dark conditions, storms, hail, snow, slush.

In Pennsylvania’s winters, lots of the car sensors will be covered in slush and inoperable likely. At night When the industry finally began testing vehicles, an autonomous car ran over a female killing her. Autonomous vehicles will have many excellent uses such as with open-pit mining or simply moving goods via vehicles on interstates.

However, a driverless car for Ma and Pa is still likely a decade or two away and that is if anyone even would want one. The major automobile manufacturers are bringing their electric vehicles to market that will create competition for Tesla. Consumers may feel better about buying an electric vehicle from a good large carmaker that offers full service rather than shaky Tesla.

China is removing subsidies offered to Tesla. That is a new headache that may require Musk smoke cigarettes more boobies and drink much more shots. All the environmental-style systems, electric cars, solar energy, wind energy, etc.., do not endure without authorities subsidies economically. Germany had thriving solar industry years back. After the national government stopped subsidizing it, the industry was toast. All that windbag stuff above apart, what’s TSLA stock price going to do? That’s all anyone cares about. Note how it imprinted an ascending triangle design the first 2-1/2 many years of its life.

The foundation at 16.8 and breakout line is 36.6 which targets 56.4 that is achieved easily. Price stutter-steps there and then rocket launches. The Federal Reserve had the money-printing procedure in full gear in 2013 and 2014. Former Fed Chairs Bernanke and Yellen guaranteed QE Infinity. Other global central bankers began printing money colluding with the Fed, which continues to the present day.

All stocks leap into the stratosphere as price discovery is damaged by easy money. TSLA spends 2014 through 2017 jumping sideways through the 180-280 channel. Then another thrust higher occurs to begin 2017 and then price bounces sideways through the 280-380 range the last two years. The choppiness in cost is due to the news soundbites.

  • Does the business enterprise have a constant operating history? NO
  • What do you see as the strengths and weaknesses of the business/department
  • Property (e.g.: home or commercial properties)
  • CNN/Money: Poll: Scoundrels abound on Wall Street
  • 2007 – The economy happens to be in downturn but recovering
  • Start conserving

One day Tesla is running out of cash, the very next day the production numbers are exceeding anticipations. Up and down. Tesla sure does have a lot of drama around it. Keystone performed it maybe two or three years ago for a couple of trades but other than that has stayed away.

It is an extremely psychological stock reflecting its CEO’s personality. Keystone does not like the episode. The negative divergence is glaring. Tesla is about to have a religious experience in 2019. Keystone is assembling his 2019 predictions so perhaps a -30% to -50% crash in Tesla stock will be on faucet next 12 months. The veggie and desires to smackdown price in this regular monthly timeframe.

Price gently tapped the upper standard deviation collection at 379 this month so the middle band at 322 is up for grabs. Price stabbed down through this band and recovered above back. The low band at 266 is up for grabs going forward. Note the limited standard deviation bands the tightest in Tesla’s background.