Tesla Stock Price Reaches 'Death Cross' Status
Tesla Stock Price Reaches 'Death Cross' Status
gizmodo.com
Tesla Stock Price Reaches 'Death Cross' Status
100 comments
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No such thing as a death cross for a company that is now embedded at the highest level of the federal government. Don't get too excited, ass hat and the swasticars aren't going anywhere. If you havent dumped your Tesla yet, get fucked at this point.
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There is only so much they can do to prop it up. If noone is buying them, and noone wants the stock, its going to go down short of the govt literally buying the stock and handing it over to musk.
That unfortunately would not surprise me. How sad.
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Tesla could literally never sell another car again, and it wouldn't matter as long as people continue to buy the stock.
It's been wildly over priced for a very long time, so clearly the people who are keeping it afloat aren't interested in whether the company is actually profitable or not.
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Til magically the government starts buying all its cars from them, and they start making tanks and drones for the military.
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Cyber truck USPS fleet vehicles.
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SAD
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Plenty of Teslas were bought before most people had any idea that Elon was a fascist sociopathic asshole. Not everyone who bought one can afford to just dump a functioning vehicle with shitty resale value. Anyways, we don't really want to see every Tesla on the road retired at the same time, so somebody will be driving them.
Cybertrucks are a bit different in my estimation. Anyone who bought a Cybertruck should have known who they were buying it from. Those owners bought that car to signal something, and I think it's fair to let them know that the signal was received.
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Good points, but for most Tesla models at least I would argue that the people that can afford those can afford a lower than desirable resale value in order to not feel shitty about their daily drive. From what I can tell, it doesn't really look like the used market for these has taken that hard of a hit either. Also, due the natural rapid depreciation of cars, it's not something that waiting for bad press to blow over and having a slight increase on the demand side would be worth waiting for either. Would be interested in an anecdote if someone has one, but I'm not convinced right now it would be all that hard or financially damaging to sell your Tesla. At the very least debadge that heap, when I see that I like to think the owner is trying at least.
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I dumped mine, originally was estimated to be a $92 fee or something to walk away from the lease.
Just found out a couple of days ago they're charging me every fee under the sun. Now they want $4000. Have to put it on a credit card. It royally sucks, but I'm still glad I ditched it.
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I have to be honest, as someone who is not fully immersed in the financial markets, the chart pattern reading kinda strikes me as astrology for guys in suits.
I feel this deep in my bones
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astrology for guys in suits
Naw they already made that, it's called the "Myers-Briggs Type Indicator".
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Different parts of astrology. The MBTI stuff replaces the horoscope/personality side of things, whereas chart reading replaces the future readings.
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That's for white girls on Hinge.
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And apparently my team at work. It's more of a curiosity (oh, you're somewhat extroverted? Interesting!), and it gives us a chance to ask questions to get to know a new hire.
If you're making actual decisions based on the MBTI test, then that's on you. But it's kinda fun to compare.
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To a large extent it is, the major difference being that when people take actions based of these signs, it influences which way the chart goes next, unlike the planets, which do not care the slightest what people do based on their actions. Thus you can end up making a lot of money if your actions are 1) correctly anticipating subsequent actions by other people and 2) sufficiently in advance of other actions. Which makes inside trading and pump-and-dump schemes great ways to get filthy rich, if you find yourself in a position to be able to pull that off. Or if you are lucky. Or if you have made a name for yourself and everyone else just assume you know what you are doing and follows (Warren Buffet comes to mind).
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That makes sense. Essentially, there are things that are influenced by perception and those that are immune to perception.
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Right but the planets being in particular locations in the sky doesn't really result in astrologists saying a particular thing is going to happen. They basically just make something up and then decide that's what the planet says. They could basically just ignore the positions of the planet and it wouldn't really make any difference.
Otherwise history would repeat every couple of decades.
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Warren Buffet comes to mind
But Warren Buffet does know what he's doing. He doesn't buy based on charts though, he buys based on fundamentals, and many of his bets take years to prove themselves.
I think this is more applicable to the vast swarms of YT influencers who push trading software. Get enough viewers and rent enough Lambos and people will think you know something. Or maybe even people like Jim Cramer, who has a mediocre success rate in his own trading firm, yet still has his picks get parroted because he has a TV show.
Don't blindly buy stuff because someone else tells you to, or even because someone else does. Buy stuff because you know what you're doing. If you don't know what you're doing (the vast majority of people), just buy diversified index funds. In the US, this means something like VTI and VXUS, or the various equivalents in various brokerages/retirement plans. That's what I do, and I've had a pretty good experience so far, no experience reading tea leaves required.
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Oh my God this is so f-ing true. It makes me think a lot of sociology classes I took in college where we'd talk about the artificiality of money how it's only meaningful because we have collectively decided it is. The folks who try to make it all scientific with lots of elaborate analytics and complex charts are basically just engaging a social math exercise.
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Money is an emotional thing. Do I believe that this coin / bit of paper / number on a website is something that I can exchange for goods and services? If not enough people believe that, that currency will collapse.
Mind you, not using money is inefficient at scale. Sending the bag of potatoes that I've grown in my garden this month to my internet provider for continued shitposting privileges only goes so far.
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100% totally is.
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As someone with an actual Econ degree:
... Yeah, a whole lot of 'technical signals' aka, chart reading that a lot of 'retail' (ie, amateur) day traders use... is basically astrology.
Its not quite as absolutely nonsensical as astrology, which is just absolutely 100% bullshit... like, a 50 MA crossing a 200 MA downward... definitely does indicate that stock is not having a great time right now... but as far as the "power" of such a signal to reliably indicate future trends?
No, basically no. There are some technical indicators that have a slightly higher correlation coefficient of being a reliable leading indicator, but the correlations are not really that strong... there are just way too many other confounding variables.
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Even the quants who work for hedge funds... who use some of the most advanced and complex mathematical models in the world to try to untangle all of those confounding effects....
...well, they are on average, over a decently long timescale, no better, or even slightly worse than random chance at picking stocks, bonds, a portfolio that will grow more than just the average.
Part of this is because... if a technical trading strategy that actually works to generate outsized gains... is actually figured out by one of the big boy quants... the other big boy quants will notice this and reverse engineer it from analyzing what their rival is doing.
Then, once all the big boys are using the same strategy... well now it doesn't return outsized gains anymore.
... Which is why all your 401ks are basically index funds for their stock component, which is just a weighted average basket of whichever particular market, usually the DJIA or SP500 as the Nasdaq is historically a bit more volatile.
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Now, all that being said... one arguably 'technical indicator' that always has been correct in the last 100 years... is when the bond yield curve inverts... the economy and stock market generally suffer a downturn roughly proportional to the time and magnitude of the bond yield curve inversion... soon after or right as the bond yield curve uninverts.
Except for right now, the last few years.
We have now, in the last 4 or 5 years, had 3 periods of yield curve inversion, 2 uninversions... and the broader economy has technically not yet entered into a recession, a period of negative GDP growth.
But it looks like we are heading now for basically something akin to the Great Depression, as the latest inversion is pretty widely being interpreted as 'investors no longer see the US Bonds as the defacto save haven, the USD as the defacto world currency'... which means the dollar will devalue as demand for it goes down... which means even if the tariffs went away and never came back, all our imports would be more expensive... and our exports won't be worth as much... and our external debt to other countries will become even more onerous...
And we are kind of massively reliant on importing material things and exporting services or non physical 'products'.
(Great work Mr. Trump -.-)
So... yeah you can't really make a day trading strategy out of that.
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Beyond all that, its probably also worth mentioning that GDP per capita is not a reliable measure of actual wellbeing of the population of a country when it has enormous wealth disparity.
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Yeah, it's absurd.
- The CEO is nearly universally reviled.
- They have the worst build quality of any vehicles sold in the USA.
- They are notoriously unsafe.
- They had to stop selling Cybertrucks because they had 8 recalls in a row and are literally held together with glue
- They were just hit with the most expensive recall of all time on their self driving bullshit.
- They are underwater in Europe & China.
- I probably have forgotten something.
The earnings call on the 22nd should be very interesting.
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Stop the sale of carbon credits and you'll really see the stock dip.
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I would like to remind everyone, as people seem to keep forgetting, Tesla means nothing to Elon. It could go to zero and it wouldn't affect him.
Twitter, or X, means nothing to Elon. It could collapse and shut down and it wouldn't affect him.
SpaceX is his baby. Nothing even comes close. Starlink alone guarantees he will always be one of the richest men in the world.
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That's a testable hypothesis: burn Tesla, Twitter, SpaceX etc to the ground. We can measure his reaction to each, and compare.
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No, he cares for Twitter.
SpaceX lets him pretend he's some great tech genius, but Twitter is what gives him the validation he craves. All the pro-Elon bots and stans there who fellate him feed his narcissistic desire to be loved.
That's why he "sold" Twitter to xAI. So if Tesla does tank hard enough and he gets margin called, he can't be forced to sell Twitter to cover it.
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Tesla means nothing to Elon.
Then why did he ask Trump to shill Teslas for him? He definitely cares, for narcissistic ego reasons if not financial ones.
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It could go to zero and it wouldn't affect him.
He leveraged his Tesla stock to buy Twitter. If the stock drops below a certain price, the banks will confiscate the stock. If it's not enough to cover, they'll confiscate Twitter.
But maybe I'm wrong. I would love to find out either way.
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That's why he "sold" Twitter to xAI. It's no longer "his", so he can't be forced to sell it. Loopholes within loopholes, it's the billionaire way.
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That's fine, let's still take down Tesla for good measure
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Not exactly I’m pretty sure he’s using his stocks as collateral for lots of stuff.
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He's a huge buy, borrow, die financial strategy guy.
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I hear what you are saying, but I still like to see Nazis hurt.
Let’s make Tesla a penny stock.
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Yup, this is why we need to either nationalize Starlink or just shut it down completely. This isn't something a single private company should have control of.
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One at a time. Patience is a virtue
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the dreaded “death cross,” a historical indicator of a likely downturn for the company
[...] occurs when a company’s 50-day moving average crosses and drops below the 200-day average.
Fuck Tesla and all that, but holy shit is that standard ever a depressing indicator of to just how reliant late stage capitalism is on endless growth that a tiny dip after half a year of stagnation is a reliable indicator of a company's imminent failure.
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Yes. But didn't the entire stock market (SPY) do the same thing on the daily chart?
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But if they specifically call out Tesla, they get more clickbait engagement, plus it now qualifies as a tech story! Double win!
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They actually lampshade this further down the article, at the point where clickbaiting has fulfilled its goal.
It's almost nostalgic being mildly annoyed at some slightly sub-par journalistic ethics displayed by Gizmodo and company. Feels quaint and nostalgic now. I honestly didn't know Gizmodo was still running, if I'm perfectly honest. It's been quite the decade.
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We can go lower!!!
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Here’s how it looks all time
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"...the dreaded “death cross,” a historical indicator of a likely downturn for the company.
"Business Insider called out the event, which has been hitting the stock indexes of some major players over the last couple of weeks as tariff trouble has hit just about everyone. Tesla is just the latest to see the symbol of bearishness, which occurs when a company’s 50-day moving average crosses and drops below the 200-day average.x
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I checked and TSLA is still up from where it was 6 and 12 Months ago, how is it in a death cross?
Unfortunately the stock seems fine to my.
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it's just a moving average cross. 50 day MA moves below 200 MA, that's it. Can be a bearish sign but I've seen it bounce in this moment a bunch of times.
But technical analsyis is just drawing imaginary lines on a chart, they know nothing about how stupid Trump and Musk are so it might very well be bearish. At least I hope so. I want to see him get margin called at 114$ or so they say.
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Technical analysis is where gambler's fallacy meets self-fulfilling prophecy. Though other forces are also in play.
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Yup. It's back to roughly October levels, like the rest of the S&P 500.
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The S&P 500 and Nasdaq 100 both showed it as well on Monday, as the indexes continue to fluctuate in wild and somewhat unpredictable ways
Clickbait nonsense. The market as a whole is falling and these publications choose to instead write articles about each individual stock that generates headlines. TSLA stock is still up 7% for the month and a whopping 57% for the last year.
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He doesn't care. He wants it to tank because then he can buy it out and go fully private again.
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If the stock really tanks (I've heard the magic number is $114) his loans get called & he likely has to sell xAI or SpaceX to cover.
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wouldn't surprise me if he gets bailed out with tax money
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That's not how any of this works.
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Except, to buy it out, he has to first pay the creditors for the value, because he used that as collateral to buy Twitter.
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That's great, now you get to deliver the finishing blow
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If I'm not mistaken the overwhelming majority of elons wealth is in company stock (including his other companies, not just Tesla)
It might need to fall pretty damn low for him to be able to afford all outstanding shares.
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Anything new mentioned in this article?
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:)
100 comments