Elon Musk, the well-known entrepreneur and founder of Tesla (NASDAQ:TSLA) and other companies, has been all over the news recently due to his eccentric behavior, causing even some of the major TSLA bulls to sound the alarms. Tesla stock has taken a couple of big hits, falling as low as $252.25 on Sept. 7 — a level it hasn’t traded at since early April.
There are a lot of people bashing Musk right now, but honestly, I’m still a fan. In fact, I’ve always been one — not necessarily because he is a visionary but because he is acting on ideas that have been around for decades.
For example, way back in the 1950s the International Council of Scientific Unions came up with the International Geophysical Year (IGY). This was basically an international scientific project that included a comprehensive series of global geophysical activities. These ran from July 1957 to December 1958 and included space travel, high-speed rail and solar power.
Heck, there were even electric trucks delivering products for department stores around 1900.
Rooting for Musk and Tesla Stock
I’m rooting for Musk because he’s making those ideas real, and also because he thumbs his nose at the establishment and the naysayers — Wall Street has bet and lost billions trying to destroy his dream.
That said, the weed and whiskey situation was a fiasco, although this will not stop him in the long run. However, it does put the company’s next earnings report (due out at the end of October) under a microscope. Consensus is for an earnings loss of 42 cents a share on revenue of $6.1 billion.
But let’s not forget the stock popped almost $100 the last time the company reported.
I personally am not invested in TSLA, but I like the action right now. As you can see in the chart above, Tesla stock is coming off a double bottom, and a move above $300 could spark another 15%-20% rally. I wouldn’t try to talk investors who are willing to take the risk out of buying and holding, but be aware that if it breaks below $270, downside opens up to $240, which might provide an interesting opportunity to buy with less risk.
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