As 2022 comes to a close, many of us are surely curious whether there's a bigger picture or deeper implications for some of our favorite tickers. Considering all that's happening on Twitter at the moment, it felt appropriate for our first year-in-review piece to focus on good ole Elon and a little company called Tesla.
Bearish Scenario
Delivery Numbers
$TSLA's most recent delivery numbers were the first quarter where they delivered LESS cars than they produced. With supply chain issues and inventory issues across the board with vehicles, it can be quite the catalyst to outproduce on delivered cars.
Twitter Takeover
Unfortunately, Musk's ingenuity, combined with a tendency to focus on the future rather than the here-and-now, is also a large part of what makes $TSLA stock stand out. Taking that sole company affiliated wih Elon can drastically cut the hype and retail sentiment toward TSLA stock.
PE Ratio a Problem
Let's face it: A PE ratio over 75 is not great and almost 3x higher than the "acceptable" range. And there's really not much else to say about that.
Financially Tied to Bitcoin
$BTC is down 75 percent are reaching all-time highs earlier this year. Why is this relevant? Because Elon has significant $BTC holdings, which padded earnings for a couple of quarters over the last year.
Bearish Market
The market we are in is bearish at the moment. 'Nuff said there.
Bullish Scenario
Entry Opportunity
At around $200 per share (at the time of writing), we'll be seeing attractive points of entry for $TSLA, potentially quite soon.
Infrastructure Bill
With the recent infrastructure bill, $TSLA's government kickback is doubling or more in size, which, understandably, has a massive affect on their bottom line.
October Buy-Backs
Tesla began buy-backs in October when the stock price was low. This is a long-term strategy because as the value of those shares go back up in value, Tesla's overall value goes up as well.
CyberTruck Launch
Tesla's highly-anticipated (and controversial) CyberTruck is currently slated to launch in 2023. As well, the Berlin and Texas plants are finally nearing completion and will be ready to ramp up vehicle production.
Shifting Perspectives in Retail
When the sentiment regarding retail stocks is bearish fear, we'll know that it's time for the bullish slingshot of algo buys.
