So much for your don’t worry about rising interest rate.
It’s all about the potential for higher inflation. Increasing inflation, a growing concern in the market, tends to punish high-growth stocks more than low-growth stocks because of the way financial discount rates work. Most of Tesla’s cash flow comes in future years, and future cash flow is worth less today when interest rates rise.
Sell all cloud and SAAS stocks too. Sold already, except FSLY and SNOW.
TSLA? No idea. Isn’t this expected? Should give back that part of the price that is due to adding in to S&P… that part is not fundamental… I mention this a few times here. Depending where you count that part is… Final price = Price before inclusion in S&P + new value-added due to fundamentals. Just a logical equation, no idea of actual numbers. Should be somewhere between $400-$666
I realize I have an old chart dated Jan 11 on TSLA. I might have posted this before. Anyhoo, below is the chart. Quite often, wave IV drops back into the price zone of lower degree wave four, in this case wave 4.
Fib number is neutral. I have no idea where wave IV would complete at. Just WAG. You have good reasons? I only know possible percentage zone, still can’t figure which is the correct one. For Cycle degree, this translate to very large absolute dollar differences. My best way is to see where fib numbers congruence for different waves.
TSLA was extremely expensive, based on my algo when it touched 880. I was even betting with reddit WSB that it will not touch $900 in near future. They asked me to have a TSLA Tattoo if it crosses $900 and finally I won. I was so much sure as my algo indicated as extreme rare end of expensive stock !
Similarly, TSLA is corrected was beyond it is value when it touched $621 - a rare exceptional correction level today.
TSLA stops here and reverses back to upside from here.
Both Tesla and Apple have oversized influence on markets a. and both are unfortunately depended on whims of Chinese.
Chinese will keep building Tesla and Apple products as long as they can export it.