09-04-2017, 10:56 PM
Loup Ventures' cost analysis of the Model 3 found that it was more affordable than the Toyota Camry, the fourth-most-popular vehicle in the US, without factoring in tax breaks. "Consensus thinking is the Model 3 expanded Tesla's addressable market from about 1 million cars a year to 4 million cars a year," he wrote. "However, based on our cost of ownership work, we believe the Model 3 expands Tesla's addressable market to about 11m vehicles per year in North America alone."
GENE MUNSTER: Tesla Model 3 launch is as big as iPhone - Business Insider
In the case of TSLA, though, buying the dip because it’s created an oversold condition might not work. In the table below, we show average 1y forward returns for all periods since TSLA’s IPO. When a period has an RSI of less than the period listed, it is included in the average return calculation. So for all days (0.2% of the total) when TSLA has had an RSI less than 20, it’s generated an average 1y forward return of 91.3%. As shown, the sweet spot for TSLA returns has been when RSI has been neutral, and that’s when most of the trading days have taken place. While the current reading on RSI (31.5) doesn’t necessarily mean there are more big declines to come, there’s also no reason to get fired up about a great entry point based on how the stock has traded in the past. Another shocking aspect of the table below relates to how strong a stock TSLA has been since its IPO seven years ago. For all eight of the different RSI categories shown, the worst 12-month return is 37.5% (under 30), while every other category has seen an average gain of at least 57%!