Quick Tip

I would highly recommend picking up some more TSLA stock especially after it dropped in price and after Elon Musk’s Space X just got part of a $7 billion bid from NASA. I got some more yesterday. This has been the best performing stock in my portfolio.

Musk Opens Patents

When Tesla opened up its patents last week, that was a game changer for the electric car industry.  Some may question the move but as I said before, it’s not a good bet to bet against Elon Musk.  Aside from having a fighter’s spirit he has the ability to look long term and the resources to support it.

According to Musk, his reasons for opening up his patents were based on the situation we are in regarding climate change.  He wants the conversion to electric cars to happen faster than it is already so we can reduce carbon emissions before things get any worse.

Musk stands to gain immensely from the increased output of electric cars through the ancillary sales of his batteries and components and through his charging stations. Sometimes the stars align for certain individuals and it looks like this is a great set up.   

Here’s the company’s full statement:

Tesla Motors Statement on Patents

 

Tesla Benefits From Space-X

Tesla has the potential to become like a Google or Facebook because of its investment in battery technology.  What many of the bears aren't realizing is that the company is run by Elon Musk who has two other groundbreaking companies and one hasn't gone public yet.  Basically if you want to invest in his activities Tesla (TSLA) and Solar City (SCTY) are the only options for small investors.

If and when Musk takes Space-X public, that will be a boon for his other ventures.  If you hear interviews with Musk and watch his past behavior he does what it takes to keep his companies afloat.  He even risked his personal fortune to keep Space-X running when it was about to go under.  Now with his unveiling of his new capsule and after he has some successes under his belt it is a perfect opportunity to take Space-X public.

Here’s an article on Space X’s unveiling of their new capsule:

Space-X New Capsule

Here’s a CNN article asking that questions and giving some context on Musk’s IPO opportunity:

Space-X IPO

My TSLA Saga

So needless to say I (and probably a whole lot of other investors) had a rough day with Tesla.  The stock got beat up after hours and when the markets opened it tried to make a comeback but the Bears were too strong.  I'm down about 25 points from my entry yesterday.  My intention is to hold the stock for the long term but I wanted to see if I could time my entrances and exits off of technical analysis, so much for my timing.  I may wait and see how the stock performs over the next week and possibly build a position if it recovers.

Take Profits When You Can

So just took my profits on Tesla today because of several reasons:

• The 20 period moving average crossed the 50 period moving average
• It’s the beginning of May and people usually “sell in May and go away”
• The stock is starting to get overbought on the slow stochastics

I’m going to wait for the pullback and get back in because I know this stock is going to go higher.  As I said before when you invest in Tesla you are investing in more than just a company you are investing in Elon Musk’s vision.  He is a tenacious owner and he has a way of surviving situations that is commendable.  As they say the best indicator of future behavior is past behavior and his ability to build his businesses and grow them amidst a chorus of naysayers bodes well for the future of Tesla.