The Jolt, Is Gone

Last week, saw the largest ever, downward thrust energy for Tesla.

Price, whacked over -14%, in one day.

Then, ‘retail’ comes in to buy the dip (emphasis added):

Retail Investors Find A New And Extremely Dangerous Way To Chase TSLA, link here.

Pay no attention to the fact, on the fundamental side, EV sales are falling off a cliff, across the board:

US Electric Vehicle Adoption Plummets, link here.

Goldman Slashes Tesla Delivery Estimates On Weak Monthly Trends, link here.

All of which feeds into the (EV) supporting side of manufacturing:

Chinese-Owned Firm Halts Construction On Battery Plant In America’s EV Heartland, link here.

Then, on the environmental side, yet another EV fire:

New Footage Shows Abandoned Cargo Ship Laden With Chinese Cars Burning In Pacific, link here.

On the political side, it’s hard to gauge:

Musk Hit Bessent ‘Like A Rugby Player’ In White House Fight, Bannon Claims, link here.

‘Very Disrespectful’: Trump ‘Assumes’ Musk Relationship Is Over, link here.

The reason the politics are important, is because of the subsidies, link here.

On the price action side, we have the following:

Tesla TSLA, Daily

Pre-market trading (as of 8:56 a.m., EST) is around 315.15, slightly below the 50% retrace level shown.

Unfortunately (for them), the ‘retail’ investor, is telling us where the probabilities lay (not advice, not a recommendation).

Retail Woes

Before we feel sorry for ‘retail’, we’ve all been there at one point. Robert Prechter Jr., said it best when asked, ‘What advice, do you have for the average investor?’

His response was timeless: ‘Stop being the average investor’

What’s Next?

We’ve just had the largest downward force in the history of TSLA, a rebound fueled by apparent desperation, price action at or near the 50% retrace (from the 5/29, highs); the overall probabilities have become clear.

Stay Tuned

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