The Reevaluation Stage

Much like our analysis regarding PCLN yesterday after earnings, this morning after its own earnings Tesla Motors compels us to take a look at the leader on multiple timeframes.

First, just like PCLN, Tesla has gone, net-net, nowhere over the last two years. Specifically, TSLA is trading at the same price today it was in May 2014. So, despite the steadfast bull faction arguing that the name is a super-stock, the reality is that we are no longer in that momentum, one-way short squeeze mode. 

Beyond that, dating back to the summer of 2014 TSLA remains in correction mode, even with a promising rally/squeeze into April the stock still made a lower swing high. And with lower highs and lower lows, broadly speaking, TSLA remains in a corrective structure. The first daily chart, below, illustrates as much, up against a very basic resistance trendline. 

Turning the longer-term timeframe, on the second chart below of the monthly, there remains a distinct possibility that TSLA is forming a massive and complex top, not unlike PCLN, as well. $185 eventually needs to go in order for that super bear thesis to have a chance. 

One thing is for sure: With TSLA down more than 4% as I write this after earnings, the market is once again driving home the point that TSLA remains in the reevaluation stage where we sort out if the firm truly is a future star of capitalism, or will (electric) slide itself down back to reality.