Thursday 13 May 2021

Tesla the bellweather falls along with frothy US markets

Sell in May and go away is the old adage and for another year it seems likely to come true!

Elon Musk's Tesla has long been a favourite in the US markets. beating the competition with technology and Musk's appeal as a real superhero character complete with many flaws.

In January Tesla hit an all time intraday high of $900 per share, today it is heading down to $600 and rapidly, taking the shine of the US tech stocks as the recovery takes hold. 

But of course there is more to it than that, Musk promoted Dogecoin and Bitcoin and has also announced he won't be taking bitcoin as payment for cars anymore due to environmental concerns. This has pegged Bitcoin 10%+ too and taken the steam out of the crypto bubble. 

In China, Trump had slapped on a 25% tax on Chinese electric imports. Forced to sell more cheaply in their home market, Chinese EV cars have started to take huge bites out of Tesla sales, down as much as 67% this quarter.

This could be the start of a big-rework in the US and world markets. As the vaccinated world returns to something like normality, out of favour leisure, travel and hospitality stocks will see a resurgence as will say office space. The stay at home robinhood investors will return to the real world - they may buy real world assets for a change or drop out of their gambling habit. 

With recovery not yet baked in, I don't see a recession any time soon, but that does not mean the markets can't fall as the great reset into Value takes place? Tesla won't be coming back up to its all time highs if this comes to pass. 


Anomalous Cowshed said...

Vaguely related, via Seeking Alpha;

"The crypto world erupted overnight after Tesla (TSLA) CEO Elon Musk said he would suspend vehicle purchases using Bitcoin (BTC-USD). "We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel," he wrote in a tweet. ...

Trading at about $58K earlier on Wednesday, Bitcoin slumped to as low as $47K, or roughly 30% below its all-time high just shy of $65K. It's now changing hands at $51K, while the decline has weighed on the broader crypto world by wiping away $365B in market value."

How much was on the balance sheet again?

Utterly hilarious.

Anomalous Cowshed said...


Should have read properly. Ho hum.

dearieme said...

Now you're just teasing. It's "bellwether". I hope you feel sheepish.

andrew said...

What I think is provable:
Nothing to do with emissions.
Musk has a private jet...

On the other hand, he has bought a load of BTC, seen the value of the holding increase a lot, used that increase to make TSLA make a profit for a while.

Then someone pointed out this stuff can go down and that nice boost to profit this Q can have the opposite effect the next Q.

So I suspect he has sold his BTC for a nice profit - the market has worked that one out and so marks BTC down.

lilith said...

I sold some bitcoin the week before last! (Needed some roof tiles and the garden fence has almost blown down.) I expect Elon noticed.

You have to admire Elon. He's the USA's answer to Vince Crusty Dale with his windmill subsidies, although he's got more ambition than Vince.

lilith said...

PS. Yougov just asked me how I would feel about 10 years of lockdown.....

Nick Drew said...

Go on then ... the floor is yours!


lilith said...

Well, firstly, who wants to know how I'd feel about 10 years of lockdown? What kind of human thinks a 10 year lockdown could even be a plan?
Secondly, why do the powers that be WANT to incarcerate healthy humans in their homes until they are no longer healthy or sane?
I tried to screen shot the questions but I live in Silicone Pines, the care home for the technologically retarded. They wanted to know if I'd prefer to die younger than be locked down for 10 years and how much sooner I'd prefer to die than be locked down for that amount of time.

lilith said...

Obviously I suggested "Kill me NOW" or equivalent.

lilith said...

If 10 years was too long, just how long would I be prepared to live that way?

djm said...

Lockdown for 10 years...... was there no option to reply "Everyone connected with such a proposition should be publicly executed ?

lilith said...

Sadly, no djm. I did make a comment at the end to similar effect.

E-K said...

They can't discriminate against those low vaccine uptake areas so we're all going to have to stay locked down.

How good the vaccines are is immaterial.

Them there's the undetectable bio terrorism that's going on. I can think of a few groups that will be doing it.

Anonymous said...

"They can't discriminate against those low vaccine uptake areas"

All our weekend jabs in my leafy shire are cancelled, the jabs are going to Blackburn and Bolton where the army have been sent to jab. Let the bodies pile high, I say, if they don't want to have the jab who are we to make them?

E-K said...
This comment has been removed by the author.
E-K said...

Anything we do is racist.

Except a general lockdown, general face masks and everyone suffering because a favoured minority refuse to take it.

Then there is the obvious hazard of bio-terrorist railing-lickers and deliberate vectors circulating socially which can come from half a dozen groups that I could think of.

I don't blame them.

I blame our gutless leadership and those communist infiltrators in permanent office.

And I also blame those around me who should know better and who are supposed to be intelligent but have been so easily fooled.

I despair of it all.