Tuesday, September 18, 2018

FUD before the Quarterly Sales Report

I am at constant awe at how Tesla ($TSLA) continues to rise above the FUD talk coming out of the media. It has been particularly rampant lately -- so much so that the balance is completely out of sync with reality. It must not be easy for Tesla employees to endure this abuse from the media, so I give them props for keeping their course. Actually, I am giving them more than props. I gave them my money in the form of shares! hehe.

$TSLA is down again today, but not to my dismay. Something happened just before 11:40 AM that dropped the stock by about $10/share. Suspiciously, it will probably be discovered as another game being played by the short-sellers who plaster negative news through their usual media outlets and then start share dumping to make it look like their news is real.

I'm not going to comment right now about the Department of Justice probe into Tesla. There is too much unsubstantiated noise, and I'd rather wait until there's something of substance to report. If you scroll to the bottom of this post, you'll see that after 5 days (3 business days), Tesla stock is up.

FUD Increase Just Before the Tesla Quarterly Earnings Report
This is something I wish could be tracked. The general experience is that the FUD news seems to increase in intensity as we near the next Tesla Quarterly Report. I've noticed over the last two and a half years that the stock generally increases substantially after receiving all the positive news in the Quarterly Earnings call. It's as if the short sellers do everything to sink the stock before it comes out to lessen the blow to their short gamble. This upcoming third quarter is anticipated to be a financial fulcrum point for Tesla. This is the point at which Tesla will post a profit on an ongoing basis. And all the reports indicate that it is likely to happen. This is the single biggest blow to any $TSLA short seller -- Tesla profitability. As a result, the FUD has been exceptionally fierce lately.

If you are not familiar with the term FUD, it represents "Fear, Uncertainty, Doubt." It's a strategy used to instill these qualities in the public about something or someone -- in our case here, Tesla and Elon Musk. They are targeted with the sole intention of ruining their value and reputation. Because Tesla is the most shorted stock in history, they are particularly susceptible to this kind of abuse.


However, I am not even remotely concerned. I am learning to look at long-term intentions, and the benefit that comes from keeping your eye on what's important. And from what I can see, the stock is doing just fine.



MY POSITIONS FOR TODAY

As of September 18, 2018 closing.

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