Tesla (TSLA) Acceleration - The Case for $4,000/Share


I updated our view on TSLA in the Blue Line Weekend Update this last weekend. Today we got a "Buy-Pending based upon TSLA's recovery from its post-earnings knee-jerk lows. The last Buy we got on TSLA was on July 9th and the July $230 calls went from $11.40 to $36.80 in two weeks. Should the current Buy be confirmed, it will be another stab at even better returns once the Fed meeting on Wednesday stops shadowing the market

From July 27th Weekend Update:

Tesla got slapped down on earnings as the company continues to be treated like a car company akin to Ford or General Motors and not a cutting edge high technology - alternative energy company. Note on the chart above that even with the 12% post-earnings haircut price has retreated to $224, a 50% Fibonacci retracement level of its powerful leg up from the $177 low in early June.  The next Fib level, 61.8% isn't much lower at $214. Look for major support at $180-$200, a test of June's lows. Lots of levels and reasons (see charts below)  to buy the stock, with a stop at $175 and a target, according to Catherine Wood at ARK invest, of $4,000.  Maybe she's also looking at growing revenues and cash:


Two years from now it won't matter what you paid to acquire TSLA shares, only that you did. Any drop below $200 is a pound the table "Buy Signal."