Tesla Is One of the Worst EV Stocks – Here’s Why
Exit SLV Now
First thing’s first – yesterday, we rolled our SLV calls into August. Our new calls filled at their limit price – but our older position never hit the $0.10 limit I recommended to exit.
So, we’re going to exit this position at market today to ensure we get out – and can move our focus to the August $25 calls.
Here’s what to do:
You can track our new SLV calls right here in the Profit Takeover portfolio.
Which will have another new position tomorrow…
The Summer’s Top Oil Trade – LIVE Reveal Tomorrow
Oil prices have been rising for months. And now, some analysts are predicting $100 per barrel. As oil gets closer and closer to triple digits, stocks are skyrocketing.
But one stock in particular has the most to gain – and that’s the one I’m giving you a trade on during tomorrow’s live webinar.
Tune in right here at 10:30 a.m. ET sharp, and I’ll see you there.
Musk Can’t Hold a Candle to the New EV Players
Last weekend, Ford’s all-electric Mustang Cobra Jet 1400 set a new world record.
Maybe it’s the NASCAR nerd in me, but this is absolutely insane. The vehicle went a quarter mile in 8.128 seconds at 171.97 miles per hour, destroying last September’s record of 8.27 seconds.
What does this lightning-fast record mean to the trading world? Well, it’s all just another part of the ever-growing electric vehicle (EV) industry.
By now, you know how I feel about Ford Motor Co. (NYSE:F). It’s been a stock near the top of my Watchlist for a while now…
And it’s also a company ready to take first place in the EV race – especially if it’s driving that Cobra Jet.
But it’s got some stiff competition. Tesla, Honda, Lordstown Motors, GM – the EV industry is quickly resembling the streaming wars as more and more companies pile in.
Not all of these stocks, however, are worth your money.
Here are the best – and worst – stocks in the EV industry…
EV Stock Breakdown
- Tesla Inc. (Nasdaq:TSLA)
When most people think EV, they think TSLA. And I can’t blame them – I mean, Elon Musk is everywhere. Financial headlines, Twitter, Saturday Night Live – you can’t get away from the guy.
But I’ve got a hot take here – TSLA isn’t all it’s cracked up to be.
We compared the EV industry to streaming. And TSLA is the Netflix of streaming. It was here first. It was the “OG” of EV companies. And its stock has been on one of the steepest roller coaster rides the market has ever seen. A year ago today, TSLA was a $200 stock. Today, it’s just over $680.
But at some point, it’s going to run out of steam. Just like Netflix, it can’t be king forever. It looks like Ford is calling out TSLA for a drag race – and the time to buy into TSLA may have passed.
- Lordstown Motors Corp. (Nasdaq:RIDE)
Similar to TSLA, RIDE is a company with a focus exclusively on EV. But it’s not working out for them quite so well.
It was only a few weeks ago that RIDE revealed it was running out of money. Then, its CEO resigned.
The stock may be up 25% from its June low – but running out of money is never a good sign for a company. And this is one name I’d stay far, far away from.
- Honda Motor Co. Ltd (NYSE:HMC)
HMC announced its first foray into EV yesterday with the reveal of the Prologue, an electric SUV that will mark the start of the company’s switch to zero-emission vehicles by 2040.
Now, I’ve liked HMC as a stock for a while now. It’s up more than 27% over the past year – and this entry into the EV space just cemented its spot in the future of automaking.
- General Motors Company (NYSE:GM)
GM has been in the EV race for a while now – and it actually developed the battery system that will be used in the Honda Prologue, making Honda’s news good for both of these companies.
- Ford Motor Co. (NYSE:F)
You know how I feel about Ford and its F150 Lightning. This is a company that’s ready to take tons of business away from TSLA – and as it does, there’s a lot more room for upside in the stock.
TSLA used to own the EV space. But now, more and more companies are piling in. Competition is steep – which is bad for TSLA, but good for traders like you.
I’d suggest buying several of these EV names – but I’d focus specifically on the ones that haven’t had their big run up yet… which, clearly, excludes TSLA.
EV is an industry of the future – and the names I just told you about could be the key to your next asymmetrical profit.
Day Trades… Delivered by a Stand-Up Comedian
If you’ve watched me on Money Morning Live, then you know Kenny Glick.
Chief VWAP officer… the Warlock… Kenny G…
The guy goes by many names. But just know this: he’s one of the best day traders I’ve ever seen.
And now, he’s dropping his knowledge bombs every day in a new, free newsletter: This Is VWAP.
By joining This Is VWAP today, you’ll not only learn a lot about trading the indicator to end all indicators – but I can almost guarantee you’ll be entertained. I know I am – the guy’s a stand-up comedian who’ll make you laugh almost as much as my dad jokes do.
VIX Traffic Light
Yup, that’s right – we’re still looking at a red traffic light on the VIX today.
But really… are you surprised?
I’ve been forecasting a sub-15 VIX by the Fourth of July. And every day this week is bringing us one step closer to that fate.
What does Independence Day have to do with low volatility?
Well, everything. Holidays tend to lead to the “weekend effect” on steroids – something I’ll tell you all about as we get closer to the end of the trading week.
Stay tuned…
Mark’s Watchlist: Oil Edition
Oil and energy is one of the most profitable areas of the market right now. And we’re taking an even deeper dive into these stocks tomorrow at 10:30 a.m. ET during my live webinar, where I’ll reveal the top oil trade of the summer.
Don’t miss it – bookmark this page. That’s where you can find me tomorrow at 10:30 a.m.!
In the meantime, check out today’s watchlist…
- Transocean Ltd (NYSE:RIG)
RIG will likely be toward the top of my Watchlist for a while – especially after the big money flow we saw yesterday, when a customer bought 25,000 contracts of the November $6 calls. But instead of piggybacking this trade, I’d go out two more months to the longer-term January $5 calls. This gives you more time to profit on RIG.
- Energy Transfer LP Unit (NYSE:ET)
Like RIG, ET is a great low-dollar oil stock. At just over $10 a share, ET has got a lot of room to run as oil approaches higher prices.
- Marathon Oil Corp. (NYSE:MRO)
Another cheap stock, MRO is up 96% year-to-date (YTD). But it’s not even close to being done. I see MRO doubling its early January price soon – and going even further beyond that as oil continues to rise.
Remember – I’m going live right here tomorrow at 10:30 a.m. ET to talk all things oil. Ahead of tomorrow’s livestream, tell me everything you want to know about oil.
Why are prices rising? How high can they go? How do I trade it?
I’ll answer all these questions – and anything else you want to know – tomorrow.
Click here to ask me anything… and maybe you’ll see your question answered live tomorrow.
Until then…
Mark Sebastian
Comments
June 29 2021
Leave a Reply