You Need to Know this *ASAP*.. (Tesla Stock Investors)

Summary

The video discusses Tesla's stock performance amidst a broader tech market decline, focusing on the impact of semiconductor issues and geopolitical tensions. It also previews upcoming earnings reports from major tech companies like TSMC and Netflix, which could influence market trends. Additionally, the video features a taste test of Tesla's new tequila and explores the potential for Tesla to lead in real-world AI applications.

Takeaways

• 🚗 Tesla experienced a rough day with its stock declining, but the semiconductor sector faced a more significant downturn.
• 📉 The Russell index, which has been performing well lately, also saw poor performance, indicating a broader market decline.
• 🔍 TSMC and Netflix are set to report earnings tomorrow, which could influence the market's direction and impact Tesla's stock.
• 📊 The script discusses the technicals of Tesla's stock, suggesting that the current situation may not be as negative as it appears if certain support levels hold.
• 🍹 The video includes a segment on Tesla tequila, highlighting its packaging and the host's experience tasting it.
• 🌐 Geopolitical tensions and potential policy changes, particularly around semiconductor exports to China, are causing uncertainty in the market.
• 💼 The Biden administration's and Trump's potential policies on semiconductors are both seen as restrictive, adding to market volatility.
• 📈 Despite the day's downturn, some see the pre-earnings drop in tech stocks as a positive, as it lowers expectations and could set the stage for a positive reaction to earnings.
• 🏛️ There is speculation about potential changes in the U.S. presidential race, which could introduce further uncertainty to the markets.
• 💡 Elon Musk's comments position Tesla as a real-world AI company, suggesting that its focus on applying AI in practical ways could be a significant driver for its future success.
• 📈 The video suggests that Tesla's stock could see significant upside in the coming months if the market begins to value companies applying real-world AI more highly.

Q & A

Why did Tesla have a rough day in the stock market?

Tesla had a rough day due to a broader decline in tech stocks and semiconductor companies. The market was impacted by concerns over earnings and geopolitical issues.

Which other tech companies were affected by the market decline?

Other tech companies affected included semiconductor companies like ASML, which declined over 11%, and big tech names that have been performing well recently.

What are the potential impacts of TSMC and Netflix reporting their earnings?

TSMC and Netflix's earnings reports could drive the next market move, either higher or lower. Their results will influence market sentiment and potentially affect other big tech stocks, including Tesla.

What is the significance of the recent decline for semiconductor companies?

The decline in semiconductor companies, including ASML, was partly due to the Biden administration considering new rules to restrict exporting critical chip-making equipment to China, which significantly affects companies like ASML.

How might political developments influence the semiconductor industry?

Political developments, such as the Biden administration's and potential future administrations' policies on semiconductor exports, create uncertainty and could impact the industry's long-term prospects.

What was the bad news mentioned in the video regarding the semiconductor sector?

The bad news included ASML's significant decline, geopolitical issues affecting semiconductor exports, and mixed earnings reports from companies like ASML.

What was the good news mentioned in the video regarding the stock market?

The good news is that the recent decline in tech stocks might have lowered expectations for upcoming earnings, potentially reducing downside risks if earnings are not as bad as feared.

What role does Netflix play in the tech earnings season?

Netflix is one of the first big tech companies to report earnings and can set the tone for the broader tech sector. Its results can cause a significant sympathy reaction in other big tech stocks.

What is the significance of the S&P 500 not experiencing a 2% drop in 351 trading days?

This long streak without a significant drop indicates a period of low volatility and sustained market strength, which is notable given historical market behavior.

How is Elon Musk's view of Tesla as a 'real-world AI company' important?

Elon Musk's view highlights Tesla's focus on AI-driven products like FSD (Full Self-Driving) and Optimus robots, which he believes will be major revenue drivers and could lead to significant stock appreciation.

What are the technical levels of significance for Tesla stock?

The key technical level for Tesla is around $226-$227. Staying above this level is seen as a positive sign, while falling below it could indicate broader market issues.

What might cause Tesla stock to rally after its earnings report?

If Tesla stock experiences selling and consolidation before its earnings report, any positive surprises or even in-line results could trigger a rally, especially if expectations are lowered beforehand.

Outlines

00:00

🚗 Tesla's Stock and Tech Market Decline

The video discusses Tesla's stock performance, noting a rough day for the company along with other tech giants and the Russell index. The focus shifts to the semiconductor industry, with TSMC and Netflix's upcoming earnings reports set to influence market movements. The presenter also mentions Tesla's tequila, highlighting its packaging and taste, and discusses the potential impact of geopolitical tensions and policy changes on the semiconductor industry, including restrictions on exports to China.

05:00

📉 Semiconductor Industry Challenges and Market Expectations

This paragraph delves into the semiconductor industry's challenges, particularly the potential long-term issues with chip equipment exports to China due to the Biden administration's policies. The impact of these policies on companies like ASML is discussed, along with the mixed earnings results. The video also touches on the potential for increased restrictions under a Trump presidency, emphasizing the market's aversion to uncertainty. The presenter then contrasts this with the positive aspect of lowered expectations for tech earnings, suggesting that a decline in stock prices might be a precursor to more stable market conditions.

10:03

📈 Earnings Season and Market Volatility

The video addresses the upcoming earnings season, focusing on TSMC and Netflix, and their potential to set the tone for tech stock performance. The presenter discusses the broader market implications of these earnings, including the possibility of a market short squeeze and the potential for increased short positioning. The video also speculates on the potential for a 'gray swan' event, such as Biden dropping out of the race, and its impact on market volatility. The discussion includes the historical context of market performance and the current state of credit spreads, suggesting a potential unsustainable rally in the stock market.

15:04

🌐 Geopolitical Tensions and Tech Stock Performance

This paragraph discusses the potential impact of geopolitical tensions on tech stocks, particularly in relation to Taiwan and the semiconductor industry. The presenter highlights the uncertainty created by potential policy changes under different presidential administrations and how this could affect the market. The video also touches on the positive sentiment towards Elon Musk and Tesla from Trump's vice president, JD Vance, and the broader implications of Tesla being viewed as a real-world AI company, with FSD and Optimus as key revenue drivers.

20:05

📊 Tesla Stock Outlook and Market Realizations

The final paragraph provides an outlook on Tesla's stock, suggesting that the market may soon recognize the value of companies applying real-world AI, like Tesla. The presenter predicts a potential surge in Tesla's stock price as the market shifts its focus from GPU providers to AI application companies. The discussion includes the importance of Tesla's upcoming earnings and the potential for a positive reaction if expectations are low. The video concludes with a call to action for viewers to share their thoughts on the market's direction, Tesla's potential, and the upcoming earnings reports.

Keywords

💡Tesla

Tesla is an American electric vehicle and clean energy company known for its electric cars, solar energy products, and battery storage solutions. In the video, Tesla's stock performance is discussed, highlighting its recent decline and its potential impact on the broader market. The video also mentions Tesla tequila, a product that represents the brand's expansion beyond vehicles.

💡Tech stocks

Tech stocks refer to shares of companies in the technology sector. The video script discusses the poor performance of tech stocks, including Tesla, indicating a broader market trend. Tech stocks are often seen as indicators of economic health, particularly in the innovation-driven sectors.

💡Russell Index

The Russell Index is a stock market index that represents the performance of small to mid-cap companies in the United States. The script mentions that the Russell Index, which has been performing well lately, also experienced a decline, suggesting a widespread market downturn.

💡Semiconductor companies

Semiconductor companies are businesses that design and manufacture microchips used in various electronic devices. The video discusses the sharp decline in semiconductor stocks, attributing it to geopolitical tensions and regulatory changes that could impact their business.

💡Earnings reports

Earnings reports are financial statements released by companies detailing their financial performance over a specific period. The video anticipates earnings reports from companies like TSMC and Netflix, which are expected to influence market movements and investor sentiment.

💡NASDAQ

NASDAQ is a stock exchange that lists many technology and biotechnology companies. The video mentions that the day's market decline was the worst for the NASDAQ since 2022, indicating a significant event in the technology sector.

💡TSMC

TSMC, or Taiwan Semiconductor Manufacturing Company, is a leading semiconductor foundry company. The video discusses TSMC's upcoming earnings report and its potential impact on the market, particularly in relation to other tech stocks.

💡Option activity

Option activity refers to the trading of financial derivatives that give the holder the right, but not the obligation, to buy or sell an underlying asset at a set price. The video mentions option activity in Tesla stock, suggesting that investors are using options to speculate on the company's future stock price movements.

💡Geopolitics

Geopolitics involves the impact of political factors on international relations and economic conditions. The video script discusses how geopolitical tensions, particularly those involving China and the United States, are affecting the semiconductor industry and, by extension, tech stocks.

💡Short interest

Short interest is the total number of shares that have been sold short but have not yet been covered or closed out. The video mentions short interest in the context of Tesla stock, indicating that many investors are betting against the company's stock price.

💡Real-world AI

Real-world AI refers to artificial intelligence technologies that are applied in practical, everyday contexts, as opposed to theoretical or experimental applications. The video suggests that Tesla's future success may be tied to its ability to leverage real-world AI through products like its Full Self-Driving (FSD) technology and humanoid robots called Optimus.

Highlights

Tesla and other big tech stocks experienced a sharp decline, with the Russell index also performing poorly.

TSMC, Netflix, and other companies are set to report earnings, which could influence market movements.

The technical analysis of Tesla's stock will be discussed, including current market conditions and potential future trends.

Option activity and positioning in Tesla stock will be examined, along with insights into big money's stance on the market following the decline.

The worst day for the NASDAQ since 2022 is attributed to geopolitical tensions and semiconductor industry challenges.

Tesla tequila is introduced, with a detailed description of its packaging and a personal tasting experience.

Tesla's stock decline of about 3% is considered mild compared to the broader semiconductor industry's struggles.

The Biden administration is reportedly considering restrictions on exporting chip equipment to China, affecting companies like ASML.

ASML's earnings report shows a decline in profitability and revenue, contributing to the stock's 11% drop.

Donald Trump's comments on Taiwan and potential continuation of Biden's semiconductor policies add to market uncertainty.

Markets are pricing in a Trump presidency, which could lead to more restrictions on GPU sales and increased industry uncertainty.

Semiconductor stocks like Qualcomm, ARM, and Nvidia are down significantly, setting a lower bar for upcoming earnings reports.

TSMC's earnings are expected to set the tone for the broader tech market, with implications for Tesla's stock.

The potential for a gray swan event, such as Biden stepping down, could cause substantial market selling due to increased uncertainty.

Tesla's stock performance is analyzed in the context of broader market trends and potential short-term and long-term impacts.

Elon Musk's statement that Tesla should be viewed as a real-world AI company, with FSD and Optimus as main revenue drivers, is highlighted.

The importance of real-world AI applications in the market is discussed, with Tesla positioned as a leading contender in this space.

The potential for Tesla's stock to see significant growth if the market shifts focus to real-world AI applications is explored.

The upcoming earnings reports for TSMC and Netflix are identified as key events that could influence Tesla's stock performance.

Transcripts

so it's safe to say Tesla had a pretty

rough day today and it was not just

Tesla it was basically all of your big

Tech you even did have the Russell that

did poorly as well and the Russell has

been on fire lately now we'll briefly go

over the reason for this sharp decline

today specifically in semiconductor

companies but on that note we have tsmc

that reports earnings tomorrow as well

as Netflix and that will drive the next

move for our markets For Better or For

Worse higher or lower and this will also

impact Tesla's stock now here in this

video we will also take a look at the

technicals for Tesla where we currently

are if things look good if things don't

look good I'll give you my insights and

we will also take a look at the option

activity and the positioning in Tesla

stock today not to mention we will take

a look at what big money is saying about

our markets following this decline which

in fact was the worst day for the NASDAQ

since 2022 but first before we do that

we're going to have a drink the Tesla

tequila it's finally here been waiting

for about 2 months for this moment and

it's kind of hard to see I'm not sure if

you guys will be able to see it it it

says Tesla Mescal basically everything

it says on the bottle right here on the

box with the Tesla symbol and the box

kind of reminds you of like an iPhone

box to some extent like very sturdy you

could you know put something in here or

whatnot but go ahead and open it up this

is where the good stuff starts boom box

like that pretty uh fancy looking got

your little stand oh yes we're going to

try some of this

too but boom Oh it's backwards kind of

like the last you know bottle and and in

stand that we got from the last round of

Tesla tequila back in I believe that was

2021 but it's a nice foam so you can put

it straight back in there which uh which

I do like because some people are going

to drink it some people are not going to

drink it some people are going to just

leave it in the box and the bottle is

like soft it's almost like a soft like

suede almost like a soft rubber which uh

which it's not rubber but it kind of

feels like it so we're going to go ahead

and uh crack this open I'm just going to

twist it

here all right let's

see oh that's a cork did you guys hear

that okay so I don't really have like a

shot glass or anything I I'm not a huge

uh uh liquor Drinker I I just don't

really drink liquor so I guess I don't

have any uh shot glasses but get a a

little pour on that oh it's

clear okay it's fully

clear I spilled some of it on me so

that's awesome okay perfect see you just

push it back down in there I thought it

would

screw like twist in

there I guess you kind of just put it in

there it actually does take a little bit

of strength to uh get it in there

right perfect

back on the stand she goes and it's

going to go up there but I think I'm

going to move the stand so I'm just

going to

wait and it is kind of

delicate for what it's worth I think I

might have it in there

backwards yeah I think that's the way

it's supposed to

go okay let's see

[Music]

yeah not a big liquor

Drinker

uh not going to lie it is very strong um

partially smooth it's not as smooth as

as it would expect it's it's smoother

than like in 1800 Lion's Edition here

which I haven't opened that bottle and

I've had it for almost a year now but

it's very

sweet it's kind of different

like a

sweet I don't know like like Fruity

almost maybe black

licorice I don't know you could

definitely taste the uh Agave Agave I

don't really know how to say that

word yeah very interesting let me know

what you think about Tesla's new Tesla

tequila if you have tried it and gotten

yours down below in the comment section

but with that said let's go over

everything you need to know about

Tesla's stock our markets and even what

to expect tomorrow now as I mentioned in

the beginning of this video Tesla stock

had a pretty rough day today but in the

grand scope of things in the grand scope

of what happened today to especially

semiconductors Tesla's about 3% decline

really doesn't look that bad it could

have been a lot worse now whether or not

things get worse from here for Tesla I

think largely comes down to tomorrow and

I have good and bad news what would you

like first perhaps let's start with the

bad news and what happened today that

caused asml to decline over 11% on their

earnings and what happened with your Geo

politics so the bad news is these

problems with the semiconductors may not

go away for quite a long time it was

reported today that the Biden administr

ation is considering using a wide

sweeping rule to clamp down on companies

exporting their critical chipm equipment

to China which is asml to a te asml gets

about 50% of their revenue from China

alone and that's one reason why asml did

decline by 11% but as sml's earnings

were kind of a mixed bag they were less

profitable this quarter than they were

in the same quarter last year they

brought in less Revenue this quarter

than they did last year now asml sells

big machines that take like 18 months to

build so they only sold like 50 of them

last quarter but I mean they are

hundreds of millions of dollars a piece

they are massive pieces of equipment

nonetheless the earnings

were okay not great not bad and the

stock was priced for almost Perfection

and that's kind of the same thing that's

you know priced into Nvidia arm and all

of your other semiconductor names now

the other bit of bad news is this Donald

Trump said Taiwan should pay the US for

defense in an interview with Bloomberg

Business Week published on Tuesday and

there were also um similar reports that

that Trump would kind of follow the same

Biden um policies on semiconductors in

general so it looks like no matter who

is the President coming in

2025 you're you're going to have more

restrictions on gpus and where they can

be sold to what companies and that's a

longer term negative for the overall

industry and it really just creates more

uncertainty as well if Trump is now the

guy that is expected to win all of the

polls you're looking at are pricing in a

trump presidency the markets have been

pricing in a trump presidency for a

while and after the comments Trump made

last night um at the Republican National

Convention it's it's more uncertain what

that policy framework would actually

look like Carl from CNBC shared this

from Morgan Stanley's trading desk quote

the Trump policy on semis semis is

likely not that different from the Biden

Biden Administration which has been

aggressive on AI chip restrictions and

Nvidia component shipments to howi I

think I say that right howi ho looks

like Hawaii howi and domestic subsidies

via the chips act but the approach is

quite different as Biden has implemented

restrictions via clear communicated

Department of Commerce guidelines versus

Trump's loser approach which creates

more

uncertainty unpredictability and

volatility for semi stocks even if the

policies are similar oh I read that

wrong it's looser policy approach not

loser policy approach but basically what

they're saying is Biden and the current

Administration has been long in advance

kind of televising to the markets what

they plan to do as far as these GPU

restrictions Trump on the other hand may

just come out one blue sunny afternoon

and say yeah you're no longer allowed to

sell those components to that country or

company and that does in and of itself

create more uncertainty and trust me the

markets can handle bad news but what

they can't handle uncertainty I say this

all the time and it's very relevant

especially on a day like today all of

this was the bad news are you ready for

the good news the good news is pretty

straightforward Qualcomm is down 88.3%

marll is down almost 10% arm is down 9%

Nvidia is down almost 7% today asml is

down 11% why is this good news while

heading into earnings you've already

started to lower the bar so as I've been

concerned about earnings because these

stocks are trading at all-time highs or

near alltime highs they're not anymore

now they just got a 5 to 10% discount

before those earnings that in and of

itself is a positive for broader markets

when you actually start to get these

earnings one of which is from tsmc so

instead of trotting into tomorrow

morning's earnings with tsmc thinking

everything's just fine and dandy and you

know up in the air whether or not

earnings are going to be good or bad or

what kind of reaction we're going to see

now if the earnings are not as great

perhaps you've already priced in a lot

of that from today and that I would say

is a little bit of good news going

forward into tomorrow now that doesn't

mean we're all fine that doesn't mean

tsmc can report bad earnings and the

stock will do fine or will do good

that's not what I'm saying but as long

as things are not terrible or okay at

least pretty

good I would expect limited downside in

other words I'm not expecting another

10% down day if tsmc com comes in line

with estimates whereas yesterday if this

selloff did not happen today you

probably would have got a 10% plus

knee-jerk reaction on TSC tsmc's

earnings tomorrow with inline

expectations being met now tomorrow

morning you will have like I said tsmc

noia Cintas Domino's DR Horton Abbott

the Blackstone Group KeyBank and a

couple of others and then tomorrow and

after hours you will also have Netflix

intuitive surgical PPG and some other

Netflix is also one of those companies

that even though has very little

correlation to Microsoft or Tesla or

Google or Amazon it does have a lot of

correlation when it comes down to

earnings Netflix tends to be one of the

first big Tech names to report and even

though Netflix has a totally different

business model than any other big Tech

name if Netflix has good or bad earnings

it does cause a large sympathy reaction

to those other big tech stocks and again

while I think expectations are still too

high for tsmc and Netflix they're not as

high now as they were just yesterday as

I have also talked about we have until

the end of August for Biden to get the

Democratic nomination or to actually

step out of the race this could be a

potential gray Swan event it's something

we all know that's possible that seems

like a pretty low likelihood right now

that could cause some pretty substantial

selling in markets the reason for this

is because it would create more

uncertainty um if you know let's say

Camila Harris were to step up if if she

would be president what would her policy

um preference look like we just don't

know to some extent I think you're

seeing less election volatility now

because we already well we have Joe

Biden in office now we had Trump what's

really new not a lot so I think to that

point you might see more election

volatility come out if Biden did step

down the reason I'm saying this is

because this news just came out about 15

minutes ago Biden says he will consider

dropping out of the race if a medical

condition was diagnosed by doctors and

you're starting to see more signs of a

potential step down coming including

Nancy Pelosi that is apparently calling

around to see who the replacement for

Biden would be and as I have reported in

other videos this is the biggest

outperformance of small cap stocks over

large cap stocks over a 5-day period in

history with data starting in

1978 and as I have mentioned before

what's unusual about this is these large

out performances typically occur after a

bare market like right when you're

coming out of one you tend to see small

caps really outperform the S&P literally

almost every single time in history that

is what has happened now the P's at

alltime highs or was at alltime highs

the at the same time the Russell is

massively outperforming as I also

reported in other videos the short

interest on the Russell the SNP the

NASDAQ has all went down like 30% in the

last couple of days 20 to 30% depending

on what ETF or index you're looking at

and that just shows me there was likely

a broad Market short squeeze that just

took place now when you get short

squeezes like that momentum can be

strong and they can last a while but

when you tend to see that short squeeze

end you tend to get more short

positioning back into the markets and

don't be surprised if that could cause

some downside especially correlating

with this earning season something I

have warned about a couple of times here

on the channel specifically with

semiconductors that are taking it on the

chin today but with tsmc and Netflix

that's going to set the entire mood for

all of your big Tech earnings it's like

the court of law innocent until proven

guilty when it comes to earnings and

especially the first couple you know big

Tech earnings it's guilty until proven

innocent if Netflix and tsmc fall on

earnings the rest of the gang is going

to be grouped in that same category as

they're guilty they're probably going to

have bad earnings as well Brian Dietrich

writes on X today marked 351 trading

days without a 2% drop for the S&P 500

tying the longest streak since pre

Global financial crisis so nonetheless

it has been a long time since we have

really seen any kind of substantial

volatility take a look at what Trump's

vice president JD Vance just said about

Elon Musk this is actually incredible

look Elon and I know each other a little

bit but Elon is actually a great example

of an American entrepreneur who's built

a company but also a company that's

employed a lot of good American workers

if you think about you know Elon Musk is

in some ways a throwback to an older

generation of American entrepreneur he

builds real things he builds cars he

builds rockets and that's I think the of

economy that President Trump wants to

create those are some very favorable

words towards Elon and Tesla let me know

what you think about that down below in

the comment section as Seth golden

writes the S&P has made 38 all-time

highs in 2024 has made 38 all-time highs

in calendar years 12 times previously

every single time the SNP has continued

to make higher highs for the year the

top is not likely in just yet and really

the central thing that I'm paying

attention to is the economy as long as

the economy continues to hold up as long

as we're looking ahead to the FED that

starts to cut rates I think any kind of

correction we do get will likely be met

with new all-time highs Again by the end

of this year fed Waller said today the

FED is getting closer to the time when

cutting the policy rate is warranted

Michael a Gade a CFA on X says Trump is

bearish for Tech few understand this I

actually don't know of this individual

but he does have over

735,000 followers on X now Bank of

America just came out with some very

interesting research they say credit

spreads say the stock rally is

unsustainable flashing the biggest

warning sits the do bubble and you can

see lowquality credit dispersion is the

widest since 1999 through 2022 and

anytime you get these credit spreads

that start to widen especially on the

low quality spreads that tends to be a

sign of a crash coming in markets but

this is again one of those data points

or historical references that we can

look at and say Market should have

already crashed by now but yet stocks

just continue to new all-time highs so I

think we are truly in uncharted waters

here and and that's why I do think every

data point every major earnings will be

important for what happens to broader

markets now the interesting flow

sentiment today over on ortex you have

seen seven orders totaling $1.58 million

in Tesla with a positive order value of

52% the short position remains largely

unchanged at

3.79% Short interest of free float

26.98 billion currently in short

positions and 105 17 million shares that

are currently sold short and it looks

like today you've seen about 800,000

shares that were actually sold short on

net and take a look at this Elon Musk

says Tesla should be viewed as realworld

AI company FSD and Optimus will be the

main Revenue drivers and I think this is

very important very very important

because what I've said for many months

now is right now the markets are all

caught up in the GPU providers the the

enablers of AI they're not at all

focused on the the application of AI the

um applicators of AI it will change

seemingly overnight the markets will

stop paying so much attention to GPU

providers and start looking for

companies that are actually providing

real world AI with a path to grow that

larger because this is kind of like the

dot bubble in the sense of there's a lot

of companies promising things around AI

but who's actually going to create

something that is longlasting and

fundamentally impactful the top

Contender there by far is Tesla and when

the markets do actually start to flip

and start looking at these companies

that are providing real world AI That's

when Tesla will actually see its Nvidia

moment and this is the precise moment

when Tesla's stock will explode if we're

not already at alltime highs by this

point I would expect a

run I mean I if as long as the economy

is doing okay and there's no crash going

on at that time which I imagine there

wouldn't be Tesla stock could well run

into the 6 7 800s maybe as high as

$1,000 upon um this realization I do

think that will take place by the end of

this year the markets will start to look

forward to who's actually applying this

real world AI especially if you start to

see the semiconductors Miss a little bit

here and there but I think 2025 is going

to be a solid year for that and I would

be surprised very surprised like

outright shocked if it did not take

place this year or by 2025 if we're

heading into 2026 and the markets have

still not come to this realization that

you know it really matters who's

deploying real world Ai and if the

hype's not on those companies yeah I

might as well just retire from YouTube

cuz that would be unpre ented so from

that standpoint we could be looking at a

lot of upside for Tesla stock within the

next 6 to 12 months but in the near term

we are not in IM immune to any downside

that we see in

markets we're just not and you see that

today with Tesla stock down about 4% and

the NASDAQ having a very rough day now

specifically the level that you should

only care about for Tesla is around 226

227 as long as we stay above this

long-term downtrending trend line that's

great because Tesla really really reacts

around the technicals so as long as you

stay above that level things are just

fine if you fall under that

unfortunately the markets are probably

going to be in a fullon crash like event

perhaps that's Biden stepping down

perhaps that's something else happening

who exactly knows but that would not be

a great sign if we did break under that

line and also the good news for Tesla is

the more we see this selling

consolidation heading into Tesla

earnings next week the more conditioned

we are for a rally upon those earnings

because I've said in the last couple of

videos if we don't get new products

unveiled on Tesla's earnings Tesla would

probably fall but I said that as Tesla

was in the 250s 260s and briefly in the

270s if if we fall down to like 230

heading into Tesla's earnings I would

expect a very positive reaction even if

we don't get new products unveiled so

what I'm actually explaining here is

price dictates expectations so anytime

you look at a stock that's trading super

low heading into earnings that has been

selling off you don't even have to know

the actual earnings numbers or the

expectations you can just know that

they're very low right and the odds of

an upside surprise are higher if a

Stock's at all-time highs heading into

earnings expectations are at all-time

highs and there's a greater chance of

disappointment same goes for

intermediate rallies between earning or

on shorter time frames like we have seen

recently expectations have risen over

the last couple of weeks but they're

starting to fall again as Tesla stock

has been falling in the past couple of

days so let me know what you think about

this information Down Below in the

comment section is this the start to a

larger crash is Tesla going to crash as

well is this just a simple correction

are we going to buy the dip coming

tomorrow let me know what you think

about this as well as the earnings

coming out tomorrow morning with tsmc

and then Netflix tomorrow in after hours

you guys have a fantastic rest of your

day and I will see you in the next one