Thursday, February 25, 2021

Idle Rambling -- Mid-Afternoon -- Market Open -- Market Falling -- February 25, 2021

TSLA: Upon hearing the news before the market opened, that Tesla had temporarily shut down its Model 3 line in Fremont, California, I was surprised TSLA did not fall further. I guess it took a few hours for the traders to figure it out. This is bad, bad news, and TSLA investors are finally getting it. As I told a reader:

Yes, this semiconductor shortage is not good. It will shut down assembly lines in all auto factories and all truck factories.

Fortunately the president signed an executive order yesterday to solve this logistics problem. Like the Keystone XL, he now "owns" the semiconductor problem. Let's see if he can solve that problem as quickly as his predecessor solved the vaccine problem. 

TSLA fell more than 6% today, losing more than $44 (market still open at time of posting), and trading below $700. The semiconductor story is really the only story driving TSLA today but there are other headwinds: like lots and lots of competition; being outsold by GM EVs in China; and, solar energy coming under new review following the Texas Freeze.

Tesla, Model 3, Fremont, CA, will shut down for two weeks.

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