Elias Chen commented on a stock · Aug 27 09:39

Why does Tesla's stock price quickly rise and then quickly fall back to a relatively low level?

Key point🔔Patience is required to wait for the fundamentals to change for Tesla's self-driving FSD+RoboTaxi+Optimus humanoid robot + energy storage business. Since there are already long positions in Tesla, there is no rush to build new long positions. If certain basic conditions are met, such as a profit chip ratio of less than 21%, combined with other bottom-fishing factors (for long-term value investment, the worse the technical and graphic conditions, the safer), consider using Tesla's Special funds for deep-fall re-buy.

Why does Tesla's stock price quickly rise and then quickly fall back to a relatively low level?

The overall economic situation is not good, and Tesla's P/E ratio for fiscal year 2024 has reached 90 times. The profit expectations for fiscal years 2024 and 2025 continue to decline. Large retirement funds, such as IRA and 401(K), of Vanguard Group, Inc., State Street Global Advisors (SSGA), Blackstone Group, have abundant and large funds, but they have strict scrutiny and control over investment targets, such as Tesla, and cannot arbitrarily build long positions. They also fear stocks that significantly deviate from the fundamentals of the listed company and become overvalued.

It would be very dangerous if unpredictable Morgan Stanley, JP Morgan, and cunning Goldman Sachs take advantage of the market to attack Tesla. Previously, Tesla's stock price fluctuated and fell from 299.290 to a low of 138.800, mainly due to the actions of Morgan Stanley and JP Morgan, led by James "Jamie" Dimon. Morgan Stanley and JP Morgan, the leading players on Wall Street, have the strength to contend with the three major shareholders of Tesla: Vanguard Group, Inc., Blackstone Group, and State Street Global Advisors. Morgan Stanley and JP Morgan are the oldest and most powerful banks in the United States.

It should be pointed out that Vanguard Group, Inc., Blackstone Group, and State Street Global Advisors also have the ability to use quantitative models derived from mathematics and statistical analysis for systematic trading, similar to Renaissance Technologies LLC. However, Mutual Funds do not switch between long and short positions as frequently as most Hedge Funds.

Why does Tesla's stock price fluctuate between short positions and long positions?

Mutual Funds that serve as retirement funds for large accounts, such as IRA and 401(K):

They generally recognize the exceptional potential of Tesla's self-driving FSD+RoboTaxi, Optimus humanoid robot, and energy storage businesses, especially the rapidly rising energy storage business that is achieving profitable financial results.

1.60% of Tesla's stock positions will lock in Tesla's long-term trends and primary trend targets and directions for value investment, to be held long-term.

2.40% of Tesla's positions are used for investing and trading against Tesla's secondary trends, short-term trends, and short-term trends. (Not trading is not a mistake)

3. Establish Tesla's Special funds for deep-fall re-buy: When Tesla's stock price enters the range of 211.700-182.000, there should be plans and step-by-step, gradient, and batched strategies. We should consider establishing positions. If it is above 211.700, we do not consider building new long positions (except for positions with no long positions).

In principle, it is most ideal to establish positions when everyone is bearish on the market, unwilling to buy and hold, and fearful of avoiding the downtrend and unfavorable technical patterns and technical indicators. Ultimately, such operations require overcoming human weaknesses, and the results are also good.