Fundamental Analysis: TSLA - RACE - GM
Detailed examination of the potential regulatory implications for these companies.
The U.S. automotive industry is undergoing a significant transformation, driven by the rapid adoption of electric vehicles (EVs). Major automakers are investing heavily in EV technology, expanding their electric vehicle offerings and charging infrastructure.
Regulatory policies, such as stricter emissions standards and incentives for EV adoption, are further accelerating this shift. However, economic factors like inflation and supply chain disruptions continue to pose challenges to the industry. As the market evolves, consumers will likely see a wider range of electric vehicle options, along with advancements in battery technology and charging infrastructure.
This edition assess three brands, Tesla is one of the most popular stocks for traders, the company is very well known for its innovation in different areas, and its chart is part of the Weekly Compass, which so far is following the script from the analysis posted two weeks ago already, when people forgot that technicals matter.
The second one is Ferrari, this company has soared 53% during 2024, still above than Tesla’s +36%. It’s worth studying a stock that is leading in the automotive sector, so the Fundamentals provide context to consider if the current pullback is buyable. So far the 40MA (purple line) has been breached for the first time since 2022.
General Motors is the third one, the chart is suggesting that a cup with handle is brewing, the fundamental analysis provides references of ifs financials. The chart currently shows a confirmation of a shooting star setup, targeting the 20 weekly average (blue line).
The market today is showing indecision, the 20DMA continues as support for SPX, the VIX is trying to fill its gap, so NVDA will dictate the direction of the next leg after today’s earnings report.
Let’s begin:
Tesla, Inc. designs, develops, manufactures, and sells high-performance electric vehicles and energy generation and storage systems. The company's fully electric vehicles, equipped with advanced autonomous driving capabilities, are transforming the automotive industry. Tesla's energy solutions, including solar panels and battery storage systems, are accelerating the world's transition to sustainable energy. Through continuous innovation and a vertically integrated business model, Tesla is driving the convergence of technology, sustainability, and transportation.
Overall Context