-TSLA expects to be profitable going forward – after posting a bigger than expected losss
-A lot of people are trading regular cars (Honda Accords, etc) in for the Tesla — so it’s not just rich people trading in their BMWs.
-Elon Musk says Tesla A.I. chip project is ‘finally coming to fruition’
–“We’ve been in semi-stealth mode on this basically for the last 2-3 years,” said Elon Musk on an earnings call today. “I think it’s probably time to let the cat out of the bag…”
–The final outcome, according to Elon, is pretty dramatic: He says that whereas Tesla’s computer vision software running on Nvidia’s hardware was handling about 200 frames per second, its specialized chip is able to crunch out 2,000 frames per second “with full redundancy and failover.”
-But could we have predicted positive news based on the stock charts? Well, the analysis below would suggest that yes, we could likely have predicted how the stock price would have reacted.
Markets dropped overnight as China said they would have to retaliate on the tariffs.
But then at the market open, Trump said he would increase tariffs – and apparently the market liked it — leading to massive rallies on S&P and Nasdaq – bringing Apple to the trillion dollar mark.
TSLA had a clear 5 wave pattern down that completed a day or 2 prior to the earnings call. Based on this drop — expectations were very low into the conference call.
When I saw on CNBC the day before the earnings call – they had on the very analyst that Elon Musk attacked one quarter earlier.
That analyst said he was expecting positive things on the earnings call. PLUS – he said he is expecting an apology from Elon Musk.
These two pieces of information – gave me conviction to add to my losing TSLA call position just before the earnings announcement.
I sold 1 of my 2 calls in the morning today – but held onto the other TSLA Aug call – and it is doing quite well. So an initially negative position is now very positive.
And it’s all because of a combination of conviction in the downside completion of the pattern as well as watching CNBC the day before the TSLA earnings call.
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