Tesla shares appear to be at a very critical point, technically, with their major long term uptrend in danger of being broken. Meanwhile the shares have just completed a double-top formation.
Furthermore, the Company just wildly disappointed with their production of the new Model 3. While they have overcome production difficulties in the past, it remains to be seen if they will ever be able to produce cars profitably without government incentives driving buyers. Meanwhile, the electric vehicle space market is going to become increasingly crowded going forward.
Tesla will need to raise money again to fund their losses. Elon Musk is a visionary genius, but how long will investors fund his projects that increasingly appear to be more experiments than profit-making ventures. An excellent article in the Wall Street Journal over the weekend calls all this into question.
We remain bullish on Elon Musk and his vision for the future. But, bearish on Tesla shares.
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