Wanted to drop this real quick as potential issue for Tesla, Lucid, Rivian, Ford and GM in upcoming future.
Some changes coming into affect next week that changes the Federal EV tax credit
vehicles must be under specific MSRP caps ($55,000 for cars and $80,000 for other market classes)
the purchaser(s) must be under adjusted gross income (AGI) limits ($150,000 for individuals, $225,000 for heads of household, $300,000 for joint filers)
Very few EV cars are under 55000 and many of the Suvs are over 80000
Not to mention most that purchase them are over these AGI levels.
So looking at the level where TSLA is, we can see that based on the 2020 levels, we can see that the big levels are 120 and then 110. Also based on the volume, the point of control is higher at 142. So that’s where I think TSLA can rally to once it does bottom. Looking at where TSLA is, 125 is an alright support, but I don’t think this is where it’ll bottom. I’m looking at 120 for a bounce or 109 if it breaks below.
I personally think that TSLA will head off the 120 and 109 level because although it does seem like it’s been finding support here and a good jump in AH, there really isn’t a good reason to buy. Also, it’s been trending on twitter for tanking, which I think will lead to another day of capitulation. I think retail will start to pile on puts and sell the stock, leading to the 120 and 109 levels before it bottoms and then rallies hard, fucking over the retail.
Personally, just something I’m looking at, I am not gonna touch puts at these levels, but I am going to keep my eye out for calls because I think there is a really good chance that TSLA bottoms soon and has an insane short squeeze ahead.
This is what I was referencing in TF material restrictions limiting tax credits however TSLA has the highest volume selller of the cars that do receive the credits.
