We told subscribers before Friday’s open on Tesla “the stock can drift below $300 to $280”. There is major support at $280 as you can see in the chart to the left.

Today’s low hit into the $280s.

We wrote to subscribers last week, “I would be patient before adding aggressively. We need bad news to clear before we can. I’d rather buy higher on good news than buying lower without clarity because it can keep going lower without clarity”.

We went on to say, “We love the earnings inflection story but have to be cognizant of the headwinds. The bears are in charge right now with the news flow. The stock’s been holding up but I think it’s a drift lower until clarity on a few issues”.

We’d love to see the stock close above $300 for confirmation of some support.

Any news would be good news.

Scrap Go-Private?

CEO, Elon Musk does not sound like he’s giving up on going private. Funding has not been lined up though.

If they scrap the go-private deal it would probably hit the stock but we’d guess the low would find itself around there. Scrapping the go-private deal would be, we believe, the best for shareholders because we have a $1000+ 12-month target price based on the earnings inflection that’s apparently starting this quarter.

Musk himself said to the 

 that $420 was code for smoking something. That price is not high, it’s way too low.

That’s why if the private transaction is scrapped, we think ultimately it can boost the stock by removing that unnecessary $420 cap.

And remember, the stock was racing thereafter earnings. Had “Funding secured” not been tweeted we may have been there already.