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Psychological analysis: Where is Tesla going?

March 15, 2017

As a super successful investor/psychologist who wrote 2 “Thinking out of the Box” books on investing in the Market through psychology, I’ll give you part of one of my best analyses of Tesla’s future as a CC. You might have guessed by now that investing through psychology (not company balance sheet) literally means that if you do a statistical analysis of variance of share prices, you will have to assign the weight of the variable called CEO of TSLA to more than .51 (Please select other 4 variables as you wish). That means that all the other variables of predicting share price movement, by definition, must be weaker than .49 combined, expecting also a small error variance! Therefore, Alon Musk becomes the grand wazir here responsible for reading the “Tea leafs” of the personality of  Trump, the new CEO of the country! In sum, these 2 genius CEO’s will determine how much money Tesla the “Cash Cow” (CC) will bring us! Kapish?

Tesla on November 8 (Election Day) was $194.94 per share (Numerology: Trump/Tesla 94/94). Trump won the CEO Prez. by surprise. Musk was in shock, Tesla dropped to $181.45 by November 14. Eleven days later we had a reality check and the idea of Trump as CEO materialized by November 25, the market (and Musk) had a second thought about Trump, and Tesla jumped back to $196.65. Trump was still inexperienced and Goofy as president, the market reacted and Tesla went back to $181.45 by December 2. The public still weren’t sure that Trump would deliver big as promised. In December Trump started delivering his good high energy CEO stuff. He and Alon Musk became “presidential” (Musk was appointed economic adviser) and the cash cow woke up. By January 24, 2017 Tesla reached $254.47, then $249.24, and by February 14 it was $255.85 and by March 13 Tesla was $280 per share!!!

The analysis:

A Tesla share earned about a $100 in 2 months! What happened between December 2, 2016 and February 14, 2017 were 2 transformations: Alon Musk who was a leftist liberal who disliked Trump a lot, was appointed by Trump as economic adviser (cognitive dissonance). Alon was forced mentally to realize for the first time ever to his chagrin that Trump was his ticket to great success, a genius like him that meant business when he said “let’s make American great again,” just like Musk meant business when he said, “Let’s live on Mars.” (Alon Musk will one day be the energy Tzar of the USA and Tesla will be the prime energy company of America). These 2 individuals will define the 21st Century!!!!

Back to Tesla making money: Between January 25 and March 14, there were 5 support/resistance changes in Tesla shares curve. That and other indicators mean that the public is still cautious in accepting the transformation of the United States into a prime mover of business on earth (The damage socialist Obama has caused as president will continue to be visible for a while). The public is skeptic about Tesla, Musk and Trump at the helm. Where is Tesla going from $250 per share? Up or down? Where is Alon going from Tesla, Solar City, the Tunnel under Los Angeles, Space X and landing  settlers on Mars? To bankrupcy? And, where is Trump going to do for the next 4 (probably 8) years as CEO of the greatest country on earth? Really make life here great?

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