Tesla Stock Plunges After Financial Media Misreports Registrations. Again., Crypto Coins News
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Tesla stock faced heavy selling on Thursday, down around 3% as Wall Street shorts build up once again.
Amid a slew of worrying headlines, several mainstream media organizations reported a collapse in Tesla vehicle registrations in the key market of California.
Despite these claims, TSLA bulls shouldn’t be too worried due to a mistaken assumption in the reporting.
It has been a stunning few months for Tesla (NASDAQ: TSLA) as Elon Musk’s EV manufacturer has proven the nay-sayers wrong with a parabolic rally. Unfortunately for nervy bulls eyeing their profits,Wall Street’s most heavily shorted stockfinally has some bad news to digest.
Tesla Stock Drops Sharply; Don’t Blame Morgan Stanley
********************************** Cross-Sell’s data might not paint the whole story when it comes to Tesla demand. | Source:Twitter
Tesla stock has skyrocketed on some incredibly bold moves from Elon Musk, the most impressive of which was his wooing of China with an incredible factory in Shanghai. Most of this positive news helped fuela historic short squeeze, prompting a massive bear attack on TSLA Monday.
Tesla stock has slipped from its highs amid massive short interest and a downgrade from Morgan Stanley. | Source- Yahoo FinanceWhile most of the media was obsessing over Morgan Stanley’s momentum downgrade to underweight (which is a pretty common occurrence at the bank), they misseda release from Reuters that painted a much darker picture for TSLA, according to the report, demand for Tesla appears to have collapsed in its most prosperous market:
Tesla Inc’s (TSLA.O) overall vehicle registrations nearly halved in the US state of California during the fourth quarter, according to a Dominion Cross-Sell report, which collates data from state motor vehicle records … .. California, a bellwether market for the electric-car maker, plummeted (**********************************************************************. 5% to (************************************************************************, in the quarter ended December (*******************************************************, from (********************************************************************, 402 in the same period a year earlier. Model 3 registrations, which accounted for about three-fourth of the total, halved to (**************************************************************, . ********
The reason for this huge drop? Allegedly,
the diminishing impact of an EV tax credit, which expired at the end of 2019.
Tesla and Apple Have Both Rallied On Handouts
Bearing some correlation toApple’s (NASDAQ: APPL) buyback spree fueled by Trump’s tax-cuts, the difference here is that Elon Musk is not able to dictate the handouts to impact TSLA, unlike Tim Cook who can use his fat cash pile at Apple however he wants.
Despite all of this, the biggest reason to ignore the registration data is that cross-sell figures have a lag, which means they misrepresent deliveries versus registrations. California takes weeks to report a registration, which would meanthe huge delivery in Decemberwould probably not have registered. This is also not the first time this effect has happened.
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Investors looking at bright green screens must ask themselves a tough question. Does Tesla Stock’s monster rally look sustainable given a gradually worsening macro environment? What they should not do is get too worried about the cataclysmic drop in registrations,whatever CNBC,Reuters orFox Businessmight have said.
This article was edited bySam Bourgi (***************************************. ****************************************
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