Appraising TSLA Potential

1/?TSLA

Depending on how you consume your stock market related news, you may have seen that Tesla was up ~12% yesterday. Tesla was one of the darlings of 2023, advancing close to 130% for the year. Year-to-date, however, the stock is down ~35% - yes, even after accounting for yesterday’s ~12% advance.

Given how beat up the stock has been lately, some might think it is a good idea to buy it while it’s down. You know, “buy low so you can sell high”. If you are a regular reader of the Chart Advisor, you may already see enough evidence on the chart. Well, stated differently, there is no evidence on the chart that buying TSLA here is a good idea. You may have hope or a general belief that TSLA will rise between now and whenever you plan to sell (which could arguably be years into the future), but when we are managing money for our clients we do not make decisions based on our hopes or beliefs. We believe in the fundamental laws of supply and demand. We want to see evidence that there is demand for the stock. Right now, all we see is an abundant supply of TSLA with not much demand.

2/ RIVN?

The daily chart for Rivian, one of Tesla’s rivals, reminds us why we would discourage anyone from buying a stock just because it is a bit beaten up.?

?After the initial fanfare of Rivian’s public offering, this stock has...

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