Tesla stock

Now that the S&P500 buzz is toning down, my expectation is the TSLA price can fall to $480-550. The low $480 was the price the first of October 2020, the end of Q3 2020. I doubt it will happen but I needed a floor with some basis of estimate.

My higher $550 price assumes others like me will 'carpe diem'. We know in two weeks, January 4, Tesla will release the Q4 2020 production numbers and China has been busy. About 5-6 weeks later, we'll get the annual financial numbers and they should be awesome. Austin and Berlin production predictions should be credible. Q2 2021 should be awesome.

Bob Wilson

 

Well this is a surprise:

• $816.04 at close today
• $829.50 after hours snapshot

Apparently the 'late comers' are in a bidding war. I don't have facts and data but suspect a lot of shallow, financial analysts have finally gotten a clue. But I'm more interested in the Q4 2020 financials. Seeing the Austin and Berlin building progress, their early production can be throwing gasoline on a fire.

One speculation is the S&P 500 tracking funds have finally realized they have to buy TSLA stock to be true to the S&P 500 ratios. Forced to buy TSLA, they are bidding the stock price to unexpected high values.

Bob Wilson

 

I had seen that one too but left with impression the exact date of adding TSLA has some flexibility. I am not a stock analyst but I suspect an option to buy future TSLA shares may have been an alternate approach. This use of an option would stretch out the stock purchase and lead to the current "squeeze" forcing function.

Bob Wilson

 

Source: Tesla’s sudden accelerations were user error, US government says - The Verge

The National Highway Traffic Safety Administration has ended a year-long review of claims that some Tesla vehicles were accelerating without warning, saying there is not enough evidence to open a full investigation. While NHTSA received 246 complaints about this “sudden unintended acceleration” phenomenon, the agency says that “pedal misapplication” was the cause of the problem in every case for which it had data to review — user error, in other words.

“There is no evidence of any fault in the accelerator pedal assemblies, motor control systems, or brake systems that has contributed to any of the cited incidents,” the agency wrote in a summary published Friday. “There is no evidence of a design factor contributing to increased likelihood of pedal misapplication. The theory provided of a potential electronic cause of SUA in the subject vehicles is based upon inaccurate assumptions about system design and log data.”
. . .
The review was opened in January 2020 in response to a “defect petition” by Brian Sparks, an investor who was shorting Tesla’s stock (or betting that the price would go down). He corralled more than 100 complaints about the issue that had already been submitted to NHTSA, as well as similar events that had been covered in the press, and asked the agency to investigate.

“I believe Tesla vehicles have a structural flaw which puts their drivers and the public at risk. I further believe Tesla must know of this flaw and be unresponsive to it,” he wrote in December 2019. Sparks also took issue with Tesla’s reluctance to provide data about these acceleration events to owners. “This petition will show that, based on publicly available information, it appears Tesla vehicles have a Sudden Unintended Acceleration Problem and Tesla must know about this problem.”
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ROTFLMAO!

Bob Wilson

 

Yes, 'go on'.

Bob Wilson