Tesla: Bears are Enjoying Themselves
All the negative news about $TWTR, Elon Musk, price cuts, weaker demand and higher car financing costs have prompted many Tesla bears to come out of the woodwork. They are declaring $TSLA to be over. Just saw a Tweet comparing $TSLA to $BB - a once hot tech story gone awry. That's a pretty dire scenario!

I do not believe I have seen as much negativity on $TSLA since the whole $420 controversy, mixed with their make-or-break production ramp on Model 3, circa 2019. It was around the same time when $MS Adam Jonas issued a $10 (pre-splits) bear case on $TSLA, because he saw potential demand issues in China and it befitted the market narrative then. He got a lot of press for issuing that report. And in the other corner, we had Cathie Wood out there on CNBC defending Tesla with her $4000 price target. Most people thought she was nuts.

Here we are again - deja vu ! China demand problems. Elon gone mad. Cathie Wood gone madder with even bolder projections. Bears are out in full force.

Never a dull moment with Tesla for sure. So much about Tesla - the stock, CEO, that Cyberpunk Cybertruck, its vision - is polarizing. Musk thinks $TSLA will be worth more than $AAPL and Aramco COMBINED. Shorts love to bet on this stock because the volatility is irresistible. Longs tend to be Musk fanboys and fangurls - Endless Love.

It is a bumpy ride for both camps. I will be writing another Tesla article on my blog Consume Your Own Tech Investing in the coming days. Meanwhile, have a read of my Q3 2022 review below and subscribe:

Brett Schafer's avatar
Do you think the negativity is just sentiment driven by price movements, or the fact that backlog and demand indicators have plummeted? I think it is the latter
Benjamin Tan's avatar
@ccm_brett definitely not just sentiment driven. There are demand issues, otherwise Tesla would not be cutting prices multiple times. They have fallen short on their Q4 guide. Musk is also not helping matters with Twitter. That said, the bear narrative has also gone into hyperdrive. Is the long term picture impaired or is it just a near term problem? That’s the main angle I want to explore further….



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