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One could easily write about Tesla all day, every day. A few on Twitter do just that. It's literally a soap opera every moment.

Here's the latest Tesla Soap. It's quite a hoot.

Please consider Tesla exec exits, CEO smokes pot on webcast, shares reel.

Tesla Inc Chief Executive Elon Musk was filmed smoking marijuana, drinking whiskey and wielding a sword just hours before the automaker said its accounting chief would leave after a one-month stint, the latest in a string of unusual behavior and executive departures that have stunned investors.

Shares of the electric carmaker tumbled as much as 10 percent on Friday, with investors on edge after a tumultuous August during which Musk proposed and then abruptly pulled the plug on a go-private deal.

Tesla Rocked by Latest Executive Shakeup, Musk's Behavior on Webcast

Please consider Tesla Rocked by Latest Executive Shakeup, Musk's Behavior on Webcast

> Tesla Inc’s shares dropped the most in two years on Friday, rocked by the departure of its accounting chief after just a month and mounting investor concerns about Chief Executive Elon Musk’s behavior after he smoked marijuana on a live webcast. Investors in the electric carmaker are on edge after a tumultuous August, during which Musk proposed and then abruptly pulled the plug on a go-private deal. Tesla said Chief Accounting Officer Dave Morton resigned because of discomfort with the public attention and pace of work. Morton, whose departure comes after the U.S. Securities and Exchange Commission opened an inquiry into Musk’s aborted plan, joins a list of executives who have left Tesla recently.

Bonds Collapse

> Tesla’s $1.8 billion junk bond maturing in August 2025 plunged as much as 4 cents on the dollar to below 82 cents, a record low, in Friday trading, pushing the yield above 8.8 percent.


What follows is a potpourri roundup that I started a couple days ago. The TA charts now look amusing.

Monthly Estimates

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Elon Musk brags about August sales despite not being willing to publish official numbers.

Let's investigate 1st 2nd, 3rd Claim

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If the numbers are accurate, it's first, third, and fourth. OK the Toyota is a hybrid.

That aside, the numbers are estimates. More importantly, they are far below Musk's stated goals, yet he brags about them.

Musk Calls Cave Rescuer a 'Child Rapist'

There is going to be on hell of a lawsuit over this.

Recall that on July 18, Musk Apologized for calling the Thailand cave rescuer, Vernon Unsworth, a pedophile.

> Musk this week deleted the offending tweet, which was made after Unsworth questioned the usefulness of a mini-submarine Musk was offering to help the rescue. He also deleted a subsequent comment in which he said: “Bet ya a signed dollar it’s true.”

> On Wednesday, Musk issued an apology to Unsworth in a reply to another Twitter user. He said: “My words were spoken in anger after Mr Unsworth said several untruths & suggested I engage in a sexual act with the mini-sub, which had been built as an act of kindness & according to specifications from the dive team leader.”

Last week, Musk ridiculously made this Tweet.

On August 29, CNN wrote Lawyer: We're 'finalizing' a libel lawsuit against Elon Musk over 'pedo' tweet.

Child Rapist Charge

On September 4, after once apologizing to Unsworth, In A New Email, Elon Musk Accused A Cave Rescuer Of Being A “Child Rapist” And Said He “Hopes” There's A Lawsuit.

Here's the message Musk sent to BuzzFeed, as claimed by Buzzfeed.

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Technically Speaking Weekly Chart

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On a weekly chart, Tesla is right on support. But it's very weak support. It bounced off $280 only once. It bounced off $250 twice. There is a greater chance of a decent bounce off $250.

But if that support breaks, and eventually I believe it will (counting on fundamentals), the next range of support is in the $180 to $200 range.

Technically Speaking Monthly Chart

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If the technicals and the bonds diverge, believe the bond market.​

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Tesla 2025 Bonds trade at about 85 cents on the dollar.

Note: Today's update takes it to 82 cents on the dollar.

Fundamentally Speaking

Some of my readers believe in TA, other don't.

I do, with caveats.

In a bull market, bounces off support are routine. In a bear market, crashes through support aren't.

And with all the algo-trading, TA trading patterns are truly suspect.

Speaking My Book

I am speaking my book here, but there is a far better chance of a sustained bounce from the $180-200 range than before.

Even still, I do not know if my September PUTs survive. Right now I am even despite a $60 plunge in Tesla from when I bought PUTs.

That's what time decay does to you even if you get the direction correct.

That is my message here, no matter which way the trade goes.

In retrospect, I wish I paid more for closer in strikes on the September options (unless of course Tesla crashes in the next few days). I may cover the September's if there is a quick downward move.

But also recall that I staggered the PUTs in equal dollar proportions. I am well ahead on my October, November, and December PUTs.


Because I was writing about Tesla well before and after my PUT entry, I felt it was necessary to point out my trade. I do not know how the trade will work out.

If I win spectacularly, I am not a genius. Rather, my timing was lucky. If I fail, most option trades do.

I would not have recommended the trade I put on. I took it because it seemed like a reasonable shot. And if I write about something, my readers need to know my bias.

Hopefully, my position on gold is well enough established that I do not need to mention "I have a position in gold" every time I mention the word.

Mike "Mish" Shedlock