Tesla Bubbling Up: The Tesla Share Price and the Tech Bubble

Elon Musk was looking like a crazy man in June of 2019 when Tesla [NASDAQ:TSLA] stock plunged to a low of $179. But now he’s a real genius, with the Tesla share price peaking at $969 on 4 February.

Welcome to bubble land. This is just another sign, along with the very bubbly performance in most of the FAANG stocks, that we are in the final orgasmic blow-off phase of the broader stock and tech-driven bubble.

This bubble clearly now only has months to go…not years. And these recent movements could be a sign that this bubble top is coming even sooner if the Fed’s repo explosion in money printing does abate instead of continuing.

Special 2020 report: The top five Aussie dividend superstars revealed. Hint: it’s not the banks. Click here to claim your copy now.

Tesla dropped back just below $687 on 6 February and has been bouncing modestly since. It was up to $820 on the open this morning, but then quickly dribbled back down to $755, so no clear signs yet.

Tesla is tracking the extreme bitcoin bubble of 2017 in pattern, though not in the percentage gains, with bitcoin up 15 times versus Tesla’s 5.5 times in a similar eight-month period. Still, the most dramatic of recent blow-off tech stock rallies.

Tesla Share Price Bubble Scenario 1

Source: Yahoo! Finance

[Click to open in a new window]

Here’s a second scenario showing Tesla peaking last week and bouncing a bit more before continuing down towards a $370 target.

Tesla Share Price Bubble Scenario 2

Source: Yahoo! Finance

[Click to open in a new window]

In this scenario, we are bouncing into a rally that will soon fail and see those lows sooner.

Right now I’m in Sun Valley speaking at the Tony Robbins Platinum conference. The first big speaker was one of my long-time favourites, Niall Ferguson, author of The Ascent of Money. I’ll have more on him in Friday’s rant, but he sees the China bubble as the epicenter, as I do, and he sees Tesla building a major new plant in China and targeting that as the next big market…‘What could go wrong here?’ he comments.

It shouldn’t take long to see how this plays out with the extreme movements in recent months and days, and how much it affects the broader markets…

But again, another sign of the late stages of the greatest bubble in modern history right into the most important long-term cycle for stocks: The 90-Year Super Bubble/Great Reset Cycle.

Regards,


Harry Dent Signature
Harry Dent,
For The Rum Rebellion
PS: Watch the exclusive video interview to learn why I believe Aussie real estate is overvalued and how we could soon enter our first recession in decades by 2022. Watch the Video Now

Harry Dent is an economic realist. His market predictions and strategies, as well as his general views of the economic and political state of the world, are based solely on his own knowledge.

And, as a Harvard University MBA graduate and Fortune 100 consultant, it’s not as though he’s lacking in this resource. But if experience isn’t enough to convince you, perhaps his accuracy is. In 2017, Harry Dent was making calls about the Australian property market that are coming into play as we speak.
And yet, the media portrayed him as ‘crazy’.

At The Rum Rebellion, this sort of biased, inaccurate media that isn’t accepted. Dent and his fellow editors aim to give you the information you should know, rather than what the media wants you to know. Dent believes in facts and facts alone when forming an opinion, and such is The Rum Rebellion mission.


Leave a Reply

Your email address will not be published. Required fields are marked *

The Rum Rebellion