What does the “D” really stand for in the new Tesla (TSLA) model? (October 11, 2014)
I want to look at Tesla ( NASDAQ:TSLA ). Elon Musk, who’s kind of a promoter and a really smart guy, was tweeting about the “D”, like it’s about time to unveil the “D”, so the stock starts moving higher. It turns out the “D” won’t drive by its self; it’s an all wheel drive vehicle that they actually have on another brand, so the people back in the snowy East coast, this is really good for you. For me, I really couldn’t give a rip; I like my two-wheel drive, it works just fine because the other wheels go along too.
So that turned out to be a dud and the stock moved lower. He also announced though, as part of this, that they’ve got some pretty cool technology; I haven’t seen the video on it but some pretty cool technology that helps you stay in the lane, self corrects, things like that, and that’s good.
The bottom line is the market didn’t like it. The cynic in me actually thought that was pretty funny because they should have not said it’s the “D” model but instead it’s the “T” model because with this technology that helps you stay in the lane, hey, look at all the people that can now text while driving and not be worried about killing someone; which is always scary when you see somebody swerving in the lane in the middle of the day and you know they’re not drunk they’re just stupid.
So anyway, I thought that would be a big deal, but it turns out that the market disagrees. So here’s the thing, Tesla ( NASDAQ:TSLA ) announces earnings on the first week of November, that’s what’s really going to move this stock. Between now and then my bet is the stock stays above the 200-day moving average; good luck getting down to it. If it does happen to fall down to the 200-day moving average, we’ll call it 220.00, that’s 17 points from where it is now, I think you’ve got to buy this stock.
At some point between now and earnings this stock is going to start running up in anticipation of strong earnings; it always does and it will do that all the way up until that one time when it doesn’t. So what I would suggest doing is, if the stock falls back any more look to buy a little bit of stock; wait for the first green candle, wait for the first open green candle, and what I mean by that is like this one, this one; one that shows the close higher than the open. I don’t care whether it’s up here or down here; you just want to see the close higher than the open.
What that tells you is that there are buyers that are coming into the stock during the day and their aggressiveness is out weighing the aggressiveness of the sellers who are still trying to get out of the stock. So if you wait for that, hopefully it will occur in the low end of this box as opposed to the high end of this box; then you’re getting in at a very favorable price just in time for the stock to start moving higher in response to earnings. So the “D” thing actually kind of stands for “dud:, but I think this will turn out to be a good buying opportunity for you.
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