Big Boys Initiate Tesla (TSLA) Distribution Sequence

TSLA

On May 18th, just a day before Apple (AAPL) set in an important top, I have warned people on this blog about the big boys initiating a distribute sequence on the company. Here is the link: Alert: Smart Money Is Trying To Distribute Apple (AAPL) To Fools

Now, Tesla (TSLA) is getting the same treatment. Morgan Stanley Hikes Price Target on Tesla

In a note this morning, Jonas has increased the price target for Tesla to $465 from $280 (the stock is currently at about $243). The key reason behind this is what he calls “Tesla Mobility, an app-based, on-demand mobility service.” The race for autonomous driving is nothing new, with tech giants such as Apple and Google also making a push in this realm, but the report says Tesla is well positioned to get large market share. Jonas is telling clients that “Tesla is uniquely positioned, in our view, to solve the biggest flaw in the auto industry, <4% utilization, via an app-based, on-demand mobility service.”

Blah, blah, blah……and I am well position to die at some point over the next 50-75 years. Don’t believe the hype and don’t be fooled by the big boys. This is what DISTRIBUTION looks like.

Here is the real story behind Tesla (TSLA) Tesla Motors Raises Offering to About 2.7 Million Shares Overpriced, over hyped, losing money, needs additional capital, etc… Such stocks tend to get decimated to the tune of 50-90% in bear markets. Which is coming.

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Big Boys Initiate Tesla (TSLA) Distribution Sequence  Google

Is Apple (AAPL) and Tesla (TSLA) About To Crash? Some Big Players Think So

Tesla forecast

Bank of America believes Tesla (TSLA) is about to collapse. Bank of America is predicting a massive Tesla collapse

Very quickly, it would be wise to pay attention to this analysis. As I have suggested before, Tesla is highly speculative, massively overvalued and their is no guarantee that the company will succeed in their overall mission. The competition from big automakers is catching up fast. The technicals support B of A assessment and high flyers such as TSLA tend to perform poorly in bear markets. An exact environment we anticipate.

Also, Germany’s Berenberg Bank German Bank Predicts Apple Stock Tumbles Over 50% As Shares Roundtrip To $60

Let’s use a different kind of financial analysis for Apple (AAPL). Let me tell you a short story first. In December of 2002, Apple’s valuation stood at $15 Billion. It is at $750 Billion today. Here is the point I am trying to make. If I would have told investors 12 years ago that Apple would be selling at 50X most recent price, I would have been laughed out of the building. By most investors. Reverse the situation today and you might have your answer. Plus, remember one simple truth when it comes to investing. Everyone loves a certain stock only until no one does.

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Is Apple (AAPL) and Tesla (TSLA) About To Crash? Some Big Players Think So Google

Hey Buddy…..Wanna Triple Your Money?

apple car

Here is a FREE stock tip. Buy Tesla (TSLA) today at incredibly speculative valuation of $25 Billion and sell it to Apple (AAPL) 18 months from now for $75 Billion. At least according to Jason Calacanis. Don’t believe me? Here is the analysis.

Perhaps Jason is right and Apple will buy Tesla at such a premium and you will be able to make a relatively quick 200% return on your money. It’s a crazy world after all and Apple certainly has the cash. But maybe, just maybe, this is an indicator of how out of sync with reality most investors have become.  I have a feeling that an upcoming bear market will cure this problem.

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Hey Buddy…..Wanna Triple Your Money?  Google

What’s Next For Tesla (TSLA)….Buy or Short?

TSLA

Tesla (TSLA) has been stuck in a clearly defined down trending channel since early September of 2014. The question is……

Is Tesla about to bottom and surge higher to $400 as some people expect or will it break down to test support at $120 and possibly $40?

Fundamentally speaking, the company is grossly overpriced and highly speculative. And with competition from major auto makers ramping up, Tesla is just as likely to end up bankrupt as it is to be the next run away success story. That is to say, it is still a 50/50 proposition.

Here is the bottom line. As of right now, the stock is neither a short nor a long. It is neutral. Should it reverse this downtrend and re-establish a bullish pattern, you might want to consider going long. At the same time, should the stock break below $175 level, it becomes a short sellers dream. Given our overall bear market forecast (2014/15-2017), the probability of Tesla accelerating its bear leg increases daily. If so, you might want to get ready to load up on the short side.

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What’s Next For Tesla (TSLA)….Buy or Short? Google