Tesla Stock Price is GOING DOWN! why it is

by birtanpublished on September 10, 2020

Well you must be flipping my flapjacks look at tesla my esl stock here today down around 20 for a good old tesla stock here day oh my goodness guys it is a vicious vicious day out there for all tesla shareholders

And uh man you know i don't know what to say other than it's a vicious day okay and it's not just been a vicious day it's been a vicious last several days okay let's be very clear about this i mean the stock topped out last week

Around i think it was around just around 500 a share right and ever since then it has been down down and down okay and now it's under 340 dollars

In just about like five trading days like that is extreme volatility needless to say check out the market capitalization for tesla here today it's lost over 100 billion dollars in market capitalization

Just in the past five trading days well over a hundred billion dollars i think it's closer to 150 billion dollars of valuation lost in a stock literally in five trading days okay look at that photo on

The right that guy there that's the guy that he bought at an all-time high for tesla he bought the stock at like 500 a share last week and he's just absolutely devastated in this whole situation right

Now right the five-day performance in tesla stock is down well over 30 now for the stock i mean if you bought this stock a year ago year to date three months ago you're looking pretty

But let's be very clear if you bought this stock any point in the last five days yeah i mean you're getting absolutely devastating a lot of people piled in this stock very late to the game and

Very late to the party and those people you know obviously aren't having such a happy time here to start out with if they just start building their position in the past week or two okay

But why is tesla stock falling so much and why is it falling so fast these are the questions i'm getting from people out there right now and that's what i want to address in this video here today i want to answer

This for you okay you ever seen that movie the perfect storm with george clooney mark wahlberg you know kind of a movie's probably 15 20 years old now okay they go on his fishing boat and they're

Out in the middle ocean the perfect storm comes it like you know almost pretty much like takes them out and basically imagine tesla stock is that ship right now it is caught in the middle of the

Perfect storm to take this stock down so much so fast okay you don't lose 150 billion dollars roughly of market cap that fast okay there are seven yes seven reasons why not just one or

Two reasons seven reasons why tesla stock is going down so much and so fast okay that's tesla stock there it's just it's caught in the big wave and uh yeah

We're gonna get into these seven things it's an ugly situation right now okay so i hope you guys enjoyed today's video as always if you don't my smash the thumbs up that helps the youtube channel out in a massive way and also if

You're looking for the opportunity to learn directly from me on how to make more money in the stock market while taking less risk in the stock market fill out the application below that is the first

Link in the description down there okay reason number one up here of the seven reasons why the stock is going down so much so fast is the spec people are now starting to sell off heavy okay

I was telling you guys i didn't like how all these speculative you know traders were getting in the stock over the past month or two let's just put it that way okay think about all the people that piled in

The stock just speculating because of the stock split in the s p 500 inclusion that a lot of people thought so many people bought into the stock just

Off a short-term basis they didn't care anything about tesla's mission anything about what tesla was doing long-term anything about the tesla numbers they had no clue about any of this they

Were simply buying because they said tesla stock is going to go up a bunch in the short term because the stock split is going to happen and then tussle is going to get added to the s p 500 and so therefore

Stock's going to go up a bunch and i told you guys this was annoying to me because all it was doing was it was fabricating short term numbers for tesla in terms of his stock price and was giving us a false interpretation of what

Tesla's real valuation should be and how much we should actually be up on this stock it does mean no pleasure if i'm up an extra hundred thousand dollars on tesla stock because i'm not selling tesla

Stock regardless right now so i would rather have tesla be at a more realistic valuation than like everybody just pile it in because of the short term crap that you know so many traders were getting

Involved with the stock k the split now is a thing of the past right that happened over a week ago now and it's all over it's all in the past now the stock split okay in terms of the other big reason

Why so many people were speculating so many traders were getting in the stock recently was because oh tesla was going to get added to the s p 500 well guess what it was announced recently tesla will not

Be added to the s p 500 now the silly thing about this is tesla will still likely be added to the s p 500 down the road yeah it's not right now but

Keep in mind like three months from now six months from now nine months from now 12 months from now it could get added to the s p 500 so this just shows you how many short-term speculators are in

The stock that the stock would sell off 20 today based upon the news that broke where basically tesla is not getting included in the s p 500. it's sad how much trader money came in the stock and how those traders just

Treated this stock like it was a casino it's absolutely you know i don't like it let's just put it that way and it's something that annoys me and yeah and now basically things are coming back to reality

And uh yeah we'll see when all these you know speculative people finally get out of stock was it today we finally flushed them all out orders are going to take a next you know a few trading days to get all these people out

We'll see basically we won't know for at least another week or two you know if all these people kind of flushed out or not we'll get to see in the pricing action okay

Number two of seven reason up here why the stock is selling off so fast and so much is all those people that were like hey hey hey tesla stock man goes up almost every day

Let me buy some because it's such easy money to make in the stock market i mean look at that tesla stock it just goes up all the time let's look at a charter tesla stock over the past six months okay

What are you going to see tesla stock was almost up in a straight line right it took a couple breathers along the way but it was almost up in a straight line i mean this stock on a split adjusted basis

This stock went from like a hundred dollars a share to 500 a share in about a five month span right five six months and you have so you know tesla's the most popular stock in the stock market

Let's be honest right and so you have so many people that were on the sideline along the way or maybe own some shares and they saw this price action and they said dude this stock goes up almost

Every day it's just such easy money i just have to buy tesla stock and buy tesla stock and buy tesla stock and what ends up happening when too many people see this and too many people are

Getting involved and putting in too much money it creates too much buying pressure on the stock and when you have too much buying pressure on the stock what ends up happening right the bids get pushed up and pushed up and

Pushed up and you don't have as many sellers out there so the ass continues to get pushed up and pushed up and you basically have a stock that just keeps going up keeps going up and it starts to become

Like a self-fulfilling prophecy that hey tesla stock's going up and a bunch more people buy in it makes it go up and then a bunch more people see that and they say oh tesla stock keeps going up i gotta buy it

They buy it and it's just like it keeps going and keeps going like crazy okay the flip side can happen when basically there's too much selling pressure on a stock and guess what happens with that stock price it goes down

And down and down let's be honest everybody's been talking about the stock who cares anything about the stock market right they've been telling friends family bro buy some tesla stock man it's

Only going up you gotta do it get some tests on my essa stock mom buy some tessa come on it's the best deal ever you're gonna make some easy money santa claus buy some tesla stock and

Then all sudden right now we had the reverse okay somebody pulled out the reverse uno card and said okay and all of a sudden now everybody's saying hey sell your tesla my ass so man sell it

Okay take the profit run remember these people are speculating in the stock as it was okay so now you're having a lot of people just saying hey you made a bunch of money get out get out get out get out

Take the profits okay and like i said i hate when i see this type of activity in a stock i own as a long-term investor because it's just a bunch of people gambling around money

And trying to play you know hot potato with it in the short term it's no fun i don't like it but it's what is happening right now okay reason number three of seven why the stock is going down so

Much so fast you ever seen the movie margin call it's a wonderful movie okay you know for my stock market nerds you guys will all love this movie if you've never seen it before

If you're not super into the stock market in business you might hate the movie you might think it's boring but for us that love this type of stuff it's a wonderful movie okay in a margin call what happens okay

Basically it's kind of like in the 2008 financial crisis right and uh it's just big you know investment bank and basically trying to sell out of all these positions they have that were you know

Highly dangerous positions they had on the housing market essentially okay and because margin calls are coming and that would have taken down the entire firm right well

You know you've had a lot of people margin out money to buy tesla stock because it's been going up so much so fast so you've had definitely a good amount of investors say dude i

I have to get every dollar i possibly can in tesla stock even if it's dollars i don't have i'm gonna margin out money because it just keeps going up man and then when also you have the reverse

Happen you flip and it starts going down and down and down and down and down all of a sudden you get a lot of people into really ugly situations that were margining out money whether it's funds

Or individuals in general it caused force selling okay for selling is when you have no option either to sell your position okay keep in mind there's also stop losses which is another kind of force selling

Situation but i'm really you know speaking about margin when you get margin calls from your broker whether you're a big you know investment bank or a fund or an

Individual investor let's say you got 50k in tesla stock and then you marching down another 50k in tesla stock now it's going down a bunch and also you have margin loans coming after you right it

Causes you to force sell the stock remember we talked about if there's too much selling pressure on stock it makes it go down and down and down that's the situation we have right now

Margin calls and stop losses to longs meaning people that are you know invest in the stock for the long term or just invest in a stock you know planning on it going up it's basically

What force short covering is to short sellers right if we look at what has happened with tesla stock over the last five months or so right the stocks just kept going up and up and

Up and if you were short selling tesla stock rate you kept having to be forced to cover your possession and it gets really ugly really fast because basically your broker is saying

Hey man this stock just keeps going up you know you're not meeting your your basically margin requirements and we need you to cover your short position and when you cover your short position you have to buy the stock okay

And when you buy the stock guess what that creates it creates more buying pressure on the stock right and maybe you had a stop loss of some kind on your short position which most people

That take out short positions on stocks they have stop losses in there and if their stop losses are hit they have to cover their shares they have to buy back their shares it causes more buying pressure on the

Stock okay it gets into a really ugly situation for anybody that's short selling the stock and this is why you have short squeezes that cause stocks to go up so fast okay

Now margin calls stop losses they cause even more margin calls and stop losses right because the stock continues to go down so you have more and more people selling you have more more selling pressure on

The stock you have more sellers and buyers out there so it just creates this massive snowball rolling down a big mountain right imagine you know it's a big avalanche coming

And it's just causing more and more snow to get piled on it's so bad man more margin calls cause more people to sell more stop loss is being hit caused more people to sell which causes even more

People to get margin calls which causes even more people to get stop losses and eventually that ends that cycle ends but man when it gets ugly it gets ugly fast and that's how you get tesla to lose

You know what did it lose today in terms of market capitalization it might have lost you know 60 to 80 billion dollars of market cap today that's how you get that to happen man

You just get that massive avalanche running down the hill the wrong way okay reason number four of seven why this talk is going down so much so fast is the buying hype has slowed down big

Time on this stock okay let's be honest there's not a lot of people saying you know tesla stocks a great deal recently let's just be completely honest about that in terms of hype from the company it was

Not much recently right we have all the things we've had out there and that we're excited about right model s model 3 model x model y you know obviously cyber truck got shown off last

Year we have the second part of the shanghai gigafactory getting built out right now right we have the berlin gigafactory being built out we have austin texas coming but all

This news has been known for months so we haven't really had any you know earth shaking great news come out for tesla the company recently that made everybody say oh i gotta go buy tesla stock right it's just

You know all this stuff has been known now the company's just executing really well and should for the next several years right on top of that when you think about like the buying hype around the stock right

You know i did a video with andre that was like we did that video about 24 to 48 hours before tesla stock started to dive in a massive way okay and in that video i go on to say it's gonna be dangerous

For anyone buying the stock short term okay i also said in that video tesla is a no touch in my opinion right now okay that was literally recorded like one to two days before tesla stock started to

Dive massive and when you have somebody like myself you know come out and say things like that it's going to cause a lot of people to you know kind of look around and be like

Hmm not sure i want to buy the stock and you know when tesla was trading at like a 400 and what was a 50 billion dollar market cap at its highs or whatever it was you know it was just

It gotten out of control the stock was pricing in at least five to seven years of growth at a 450 billion mark cap it had gotten to a situation where it was just ugly let's just put it

That way and that's why i have to get to a situation where i i can't like condone people buying stock like obviously you know people can make their own decisions out there and do whatever they want but when it

Comes to me giving my personal opinion i basically said this stocks you know no touch and uh you have also people like gali right galley is one of the most respected people when it comes to tesla

Stock right last week he announces he's selling you know a portion of his shares to buy a model y i'm super thrilled for i'm super happy about that but just think about what that does to

People subliminally when they hear something like that right galileo you know one of the biggest believers in the stock sold a portion of his shares to go and buy a tesla which means he valued

Getting in that model y more than he valued that you know i think was he sold off he said like nine to ten percent of his shares right and this is one of the most respected people in the internet community around

Talking about tesla stock right you know these things are all hitting people subliminally or just directly and they're thinking about this and they're hearing things about like i was saying last week where it's a no touch it's a

Dangerous stock to get involved with short term galileo sold some shares you're just seeing all this and it's like yeah not sure i want to go out there and buy tesla stock okay

You had a video i put out eight days ago okay eight days ago seven days and 21 hours ago and i went on to say in that video that the uptrend in tesla stock would end within

30 days okay i don't make a lot of short-term stock price predictions do i okay it's very rare when i do but when i do i'm pr i'm highly confident i will be right because

I hate making any type of short-term stock price predictions okay so i was willing to go on record and say tesla's uptrend in this stock price will end within the next 30 days and it'll start going down

And you know obviously that has now happened and then on top of that i did a video what was that a month month and a half ago and i said you know if you're thinking you know tesla stock's just gonna go to

The sky over the next one to two years i think you're you know sadly mistaken i expect the stock to not do a heck of a lot i think it's going to stay in a certain range over the next one to two years and it's

Just going to stay in that range i think tesla needs a one to two year breather with this stock we'll see if that happens but that's what i expect with the stock sometimes these stocks they just need breathers man they got you

Know they you know tesla stock went up like crazy like it needs a one to two year breather on this talk it could be volatile it can go up some it can have some really bad days it can

Have some really bad weeks it can have some good days some good weeks but i don't think the stock's going to go a heck of a lot of anywhere over the next one to two years i think it's going to kind of stay in a range

Okay number five of seven reasons why the stock is going down so much so fast is let's be honest there are some longs that are taking profits in this stock okay imagine how

Many people are up thousands tens of thousands hundreds of thousands or millions of dollars on tesla stock okay some of those people are going to be a little

Tempted to guess what you know take some profits okay in the private group right we we have i think it's like 2 600 2 700 members in there okay i can almost guarantee you at least 1

000 to 1500 of the members in the group actually own some portion of tesla stock and most of those individuals are up tens of thousands hundreds of thousands or millions of dollars on those

Positions okay i can almost guarantee you there's some profit taken from some individuals some are like i'm not selling any shares that's great okay you got that portion but definitely you've got another

Portion that they're like i'm getting out of stock completely or i'm just going to sell five percent 10 20 of my shares because it has gone up so much so fast a lot of people want to diversify wealth

They want to buy you know do different things so the stock has been a game changer for so many people out there i mean an absolute game changer for people's wealth and we're not talking about a

Small amount of people we're talking thousands if not tens of thousands of people have you know partially had their life changed for the much better because of tesla stock some of them are like we gotta diversify

Wealth around okay remember remember we talked about galley right sold nine to ten percent of his position i believe right to buy that model y how many people were thinking like galileo over the last week or two okay

Or no if not three weeks a lot of people i can guarantee there's a lot of people that are looking at that tusk gains and saying man i would love to go buy a tesla with some of that money or i would love to go buy a house use

Some of this money as a down payment or i want to go buy some other stocks out there things like that i can guarantee there's a lot of people that are thinking exactly like that and they're like

I'm going to sell some of my shares out there take some profits on this and redeploy the money and something else okay it's just it is what happens okay it happens with all stocks that go up huge because some of

These are game changers it's just not when it comes to tesla stock it's a whole other level of game changer because how many people retail investors got involved with the stock and made crazy money okay

Reason number six of seven why tesla stock is going down so much so fast is the nasdaq is going down so dang fast right now okay the nasdaq all of a sudden was went from you know the hottest thing

Out there to the coldest thing out there okay the nasdaq has fallen over 10 in the past three trading days 10 percent in three trading days look at nasdaq today nasdaq was down over four

Percent here today okay i mean that's not a small move let's be very clear about this when you're talking about a 10 plus move and three trading days that is serious and keep in mind even on if you

Go back four trading days ago even though the nasdaq wasn't down that day a ton of the hot stocks in the nasdaq were down huge and so we've had four straight trading days now

Where a ton of those high growth you know hot stocks in the nasdaq are down huge and once again the nasdaq in general is down 10 plus in a matter of three days okay and what happens when you have the

Market turn like this is the stocks that went up the most and we're benefiting by the nasdaq going up so much guess what goes down the most those exact same stocks i've seen this time and time again in the stock market

When the stock market will be super hot the growth stocks go up way more than all the other stocks okay they way outperform to the upside but man when you get in a market that also starts to downtrend in a major way

Those are the stocks that start getting hit 30 40 50 60 70 percent okay it's not coca-cola and pepsi that are going up you know and doubling up in price and doubling up in price in

A hot market no okay and guess what it's not coca-cola and pepsi that are going down 50 60 70 in a down market okay it's the hot growth stocks okay and

Guess what tesla's it's one of those super hot growth stocks and that's why you see the stock in three trading days sell off over 30 percent okay that is not normal there are very few

Stocks that fall over 30 percent and three trading days i can assure you of that okay reason number seven why tesla stock is selling off so much so fast has to do with big funds okay

I'm talking about investment funds hedge funds uh etfs things like that okay a lot of those big funds are forced to sell a lot of those etfs are forced to sell okay

Keep in mind a lot of these funds and etfs have rules around them where basically they they can't have certain positions be you know uh too big in their portfolios okay a lot of them will have like a ten percent

Limit max in terms of position sizing out there so when you have a stock like tesla let's say you had six percent or seven percent of your any of your portfolio in an etf let's say or a big fund or

Something like that in tesla stock and then also in tesla goes up you know it doubles up triples up no sun tesla stock could be like 10 15 20 of your fund and if no stock's supposed to be bigger than 10

That fund what are you forced to do as a big fund you have to sell it's not like you'd be like well it's tesla stock so let's just make a special rule around that no if if you have a fund do you have an etf

And it's like we you know our rule is max of ten percent of our portfolio in a particular stock or five percent you have to sell there's no like other way around it's like okay

This stock's too big now in our fund we have to sell out some shares and redeploy that money elsewhere okay and you definitely definitely have some of that going on some of those forced sell situations from some of

These funds because it just grew too big of positions okay on top of that you have some funds etfs things like that that want to just take some dang profits in this as well remember remember it's

Not just about the you know the retail investors looking at the stock and saying i want to take some profits there's a lot of other people out there looking at the stock and saying

I want to take some profits when i say other people i'm talking about big funds fund managers things like that they're looking at this they're like hmm market cap has gone up like crazy on tesla stock

Let me take some profits let me book some profits the stocks probably you know gonna downtrend for a while it's probably gonna you know have some some some heavy selling in it so let me go ahead take some profits out

Of this redeploy that money elsewhere or maybe in tesla stock if it goes down enough right you don't think about things like that okay so i hope you guys enjoyed today's video as always let me know if you want me to

Do a video tomorrow on where i see tesla stock going next i could do you know that would be kind of a natural follow-up to this video so let me know if you'd like me to do a video like that i'll

Kind of read through the comments and see if you guys are interested in something like that hope you guys enjoyed today's video as always if you don't mind smash that thumbs up that helps the youtube channel out in a

Massive way and i appreciate each and every one of you that always smash a thumbs up also if you want the opportunity to learn directly from me on how to make more money in the stock market while

Taking less risk fill out the application below that is the first link in the description down there and if you want the opportunity to be coached directly by one of my millionaire students

You can also fill out the application below first link in the description thank you for watching have a great day

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