Once again, I want to issue a big congratulations to all of our exclusive readers for nailing Tesla [NASDAQ: TSLA 0.00%↑ ] as a short after we identified that below $180 was a high probability short.
Under $180 was a key support breakdown
There is a high catalyst with the Twitter buyout causing a decline in shareholder confidence and resulting in selling
The chart portrays a boom +bust chart
Monetary conditions support Boom + Bust chart
Boom + Bust Pattern?
Tesla appears to be in a later phase of their business cycle.
Does this mean it has peaked forever?
NO!
But businesses operate in cycles and with the current monetary conditions… WHO WOULD WANT TO INVEST IN A CAR COMPANY WITH RATES GOING UP???
THE CHART
Political Factors
Not only is a rising rate environment bad for the auto industry but, Elon has devoted a lot of his capital to Twitter and that has really hurt shareholder confidence as the CEO seems to be stepping into a new game of…politics!
Politics, Cancel Culture and Elon Musk do not sit well with many shareholders and in result, people are jumping ship from be invested into the company as heavily as they once were.
There is no telling how long this decline in the economic growth will continue but, we must remember one thing…
7% is not 2%
6% is not 2%
5% is not 2%
4% is not 2%’
3% is not 2%
2.8% is not 2%
THE FED WANT TO SEE A 2% INFLATION LEVEL!!
There is ALOT MORE PAIN ahead on the ‘demand’ scale for auto companies in my opinion as higher rates will kill demand for car purchases due to excessive car payments!
DISCLAIMER: Lusso’s News LLC offers no guarantees and provides forward looking statements with intentions and sole purpose to satisfy the reader/viewer by offering only personal enjoyment and personal entertainment. If at any time a Security is purchased that is discussed at Lusso’s News, LLC on a written article, post, newsletter or comment, you agree to hold Lussosnews.Com liability free and harmless. There are no guarantees in participating in Financial Markets and full investment can be fully lossed at any time. Lusso’s News, LLC never guarantees and never offers recommendations. The company will not be responsible for any loss or damage that occurs. Anyone at Lusso’s News, LLC may be buying or selling any stock mentioned at any given time. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any Lusso’s News, LLC Service and product offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. Lusso’s News, LLC recommends you consult a licensed or registered professional before making any investment decision as you could lose your full investment at any given time as this is not a “risk-free” industry. If you do agree to this, then please exit our website now. LUSSO’S NEWS, LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Both, Lusso’s News, LLC nor any of its owners or employees are registered as a securities broker-dealer, broker, investment advisor (IA), or IA representative with the U.S. Securities and Exchange Commission, any state securities regulatory authority, or any self-regulatory organization. We do NOT give out advice, this is intended to be ONLY a publication for information and education. THE ABOVE POWERHOUSE REPORT INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND DISCLAIMER. OUR REPORT IS FOR INFORMATION PURPOSES ONLY AND IS NOT BUY OR SELL INVESTMENT OR TRADE ADVICE. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED AND FULL RISK APPLIES OF LOSING MONEY ON A TRADE. OUR WRITERS AND TRADERS ARE NOT LICENSED OR FINANCIAL ADVISORS.