Tesla’s time to take off? [Video]

Giles Coghlan LLB, Lth, MA Financial Source

Elon Musk has a reputation of a man who gets things done. It is a deserved reputation as his achievements have been quite astounding. Whether it is in space with Starling or SpaceX, on the roads with Tesla, or digitally with AI, Musk consistently takes new ground. Perhaps then it should not be a surprise to see the latest announcements from Tesla. Does it demonstrate that Tesla is going to dominate the EV market?

Firstly, Elon Musk has announced that the new Tesla drive train will leave 50% less of a factory footprint, cost $1000 less, and then it will not use rare earth materials. Tesla’s Colin Campbell stated that due to health and environmental concerns mining rare earths, the next drive unit would use a permanent magnet that does not use rare earths at all. This announcement sent the shares of China’s JL Mag Rare-Earth Co and Jiangsu Huahong Technology Stock Co tumbling as reported by Bloomberg.

Bloomberg also reported that Campbell stated that Tesla had designed its own transistor package that uses 75% less Silicon Carbide which is a big win as it is expensive. Tesla also sees the chip shortage is behind them, aims to make a new car every 45 seconds, wants to spend $175 billion to hit 20-man vehicle production and could launch two new models to help achieve that aim.

Tesla’s share price

The current share price of Tesla is around 50% down from the 2021 peak of over $400. It is contained underneath the 100 and 200 EMA. However, do any further dips lower simply offer good value buying opportunities for the long term? Is Tesla, with all the drive of Elon Musk behind it, going to innovate, add efficiency, and expand its models to a new EV-hungry world? Or will mainstream car manufacturers snap up more of the EV market share? Tesla is one share to watch, particularly, on any drops lower into the $125 region.

Learn more about HYCM

Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.