• cedric lefebvre

Tuesday, 14th April 2020

Period of quarter announcement. Expect the SP500 PUT position to pay off. Looking at 2200. Make an industry table and compute :

· Loss since January

· Expected bottom

· How COVID impacted the industry

· Any significant structural change after COVID

Opinion: The stock is up 77% so far this year, contrasting with losses around 14% for the S&P 500 index Last week alone, Shares of Tesla are Up 60%. Why is TESLA outperforming in a bearish industry?

Key stock driver: Number of vehicle delivered. 500,000 for Q2 2020. Not revisited after COVID-19 situation.

· Tesla’s production of nearly 103,000 vehicles for the quarter given factory shutdowns in China and California. Tesla produced 77,000 vehicles in the same quarter last year.

· Stock surge appears to be a case of “mean reversion,” as the stock had been “deeply, deeply” oversold after tumbling 22% in March, the worst monthly performance in seven years.

· Tesla reported first-quarter deliveries just a bit lower than consensus, which sent shares to double-digit gains in the extended session. It appears Tesla’s China production and demand are starting to rebound and should be a key growth driver over the coming quarters, although clear challenges remain in the months ahead.

· Cash burn in the near term must be watch.

· lt’s as a clear indication that EV demand had remained strong for Tesla well into the quarter, and that the company is well positioned to satisfy that renewed demand once the COVID-19 pandemic abates,”

Technical: As long as Tesla’s stock stays above the “critical support” of $390, the outlook is bullish.The $390 level is key support on the weekly charts because it is where the 200-day moving average converges with a breakout point from a multiyear resistance level.

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North Korea: · Questions about North Corean leader's health intensify. In the event he must be replaced, the sister of the North Korean dictator, Kim Yo Jong, seems to be the favorite to replace him.

Friday, 24th April 2020

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