More On Tesla Stock, Up Or Down?

The market is punching higher today, and it has some folks talking reversal, but first, here is a request from a reader re: Tesla, as it relates to its stock going up or down, I suspect

  • Let's hear more about Tesla’s storage unit for electrical energy and some of the competitors it may have.

According to ExtremeTech and some other outlets, Tesla has canceled its 10-kWh Powerwall; it will focus on its 6.4-kWh model only. An interesting move as Tesla’s battery storage business clearly has competition for both functionality and cost. Some of those competitors are:

Verd2GO, EcoBlade, Redflow, Orison, Sonnenbatterie, and GM. The ultimate and penultimate names are the two most serious company threats. The most serious existential threat, though, is natural gas or propane, for now. For the same setup costs, you get more backup duration for less cost per kWh.

Now, as to the stock price … Tesla will spend up to$5-billion on the factory; however, it will produce more than Powerwall batteries. It will make EV batteries cheaper through efficiencies and the economy of scale, which brings us back to the EV revolution …

As to a market reversal …

  • Although Wall Street has bounced sharply in the past five weeks, the 50-day moving average of the benchmark S&P 500 Index remains below the 200-day moving average. And history suggests this is a warning sign for stocks.

In the world of technical analysis, the above is ominously named the Death Cross. Warren Buffet calls this analysis voodoo. Me? I’d rather go with autos, houses, and jobs. You?