MM is a firm believer that electric vehicles and battery storage more generally is the future, Origin Energy’s announcement yesterday to wind up the country’s biggest coal fired power station early and replace it with a huge battery is testament to that, but we only have to look at Elon Musk’s Tesla Inc (TSLA US) to realise that with new technology comes significant volatility on the stock level as huge swings in optimism / pessimism roll through the market – as we like to say the elastic band becomes too stretched in both direction s creating excellent opportunities for Active Investors.
Tesla for example has already experienced 2 corrections in the 35-40% region over the same amount of years while during other periods it has garnered headlines for all the right reasons as the company & stock have kicked huge goals. Unfortunately the volatility on the stock level is akin to that of Bitcoin / BNPL stocks and as such investors need to manage their risk accordingly. MM likes TSLA under $US900 but we would leave flexibility to average into another decent leg lower.
MM is bullish TSLA under $US900
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