Elon Musk's tweet was like a stone thrown into the rushing river.
Although it didn't block all the firepower of Short Sellers, it did slow down the downpour of selling orders.
In the next few trading days, the stock price of Tesla is no longer a straight downward waterfall.
The bulls began to regroup defensive forces near 200 US Dollar, Trading Volume shrank, the fluctuations narrowed, and the K line on Time-sharing Chart became a lazy line.
The integer mark 200 US Dollar is becoming an increasingly thick support platform after being tested twice in a row last week without effective breakdown.
On April 30, the last trading day in April, bulls waited for a long-awaited rebound.
Before the opening, the construction progress of Tesla Shanghai Gigafactory was simultaneously reported by Bloomberg and Reuters--
The main steel frame structure of the factory has been formed, and the stamping workshop and assembly workshop have been capped at least two weeks ahead of schedule.
During the pre-market trading period, the stock price opened slightly higher around 206 US Dollar. After the official opening, the stock price rose moderately, and transactions were stable in the first half hour.
The real pull-up occurs after ten o'clock--
A major purchase order of more than 300,000 shares was placed at 208 US Dollar, which directly triggered all short-term Short Sellers Stop-loss Selling.
Short Sellers's supplemented Buying Pressure superimposed technical copy chassis formed a stampede effect before the 210 US Dollar integer mark.
The K line on Time-sharing Chart pulled from 208 US Dollar to 213 US Dollar in one go, with almost no callback in the middle.
Although the position of 213 US Dollar was temporarily blocked and fell slightly in the afternoon,
But in the last hour before the market closed, the stock price of Tesla returned to 212 US Dollar and closed at this price.
After returning to New York from a business trip, Lin Shicheng and Zhao Chen analyzed Elon Musk's counterattacks against various Short Selling logics one by one on the phone.
Muddy Waters's Short Selling report questions the subsidy decline and the sharp drop in deliveries.
However, Elon Musk directly pointed out that the decrease in delivery volume in the first quarter was due to the intensive digestion of backlogged orders in the fourth quarter of last year, resulting in an abnormally high base.
Distorting one-time fluctuations in delivery pace as "structural weakness in demand" is typically misleading.
Directly clarifies the biggest misunderstanding in the market.
Citron's Short Selling report was burned to its foundation by Elon Musk--
In the past three years, Citron has gone from Short Selling to long to Short Selling. Every change in position has accurately created noise in the media.
Moreover, a bullish report was just released in March this year claiming that the stock price of Tesla will return to 320 US Dollar.
Just over a month later, the same institution issued a completely opposite bearish report. This inconsistency greatly reduced its credibility.
Regarding rumors about production capacity and shutdowns, Elon Musk also gave a direct response--
The four-hour suspension of the Fremont Factory Model 3 production line was a planned mold change and routine maintenance, and was maliciously exaggerated into a "production line shutdown."
In the next week, the stock price of Tesla fluctuated within a narrow range around 210 US Dollar.
The effect of Elon Musk's tweet is not to reverse the Short Sellers trend, but to provide bulls with a reason to stand firm on 200 US Dollar, the Psychological Threshold.
But with the end of the Labor Day holiday, Chen Xi and Zhang Qingxue have also entered a state of continuous improvement in China--
They need to closely coordinate the various assets held by Henglong Capital, while also handling some more urgent matters assigned by Zhao Chen.
Su Wantang and Chongqing also assisted them at the same time. The three of them did not take a day off during the holiday.
Also not taking a break are the analysts at Wall Street.
Morgan Stanley--One of the most influential investment banks in the world--
A research report was thrown out, like a depth bomb dropped directly into the already turbulent Tesla Bulls and Bears battlefield.
In a research report, Morgan Stanley analyst Adam Jonas significantly lowered Tesla's stock price expectations under the most pessimistic scenario from the previous 97 US Dollar to 10 US Dollar, which is equivalent to about 95% of the potential downside.
The worst-case scenario identified by Jonas is a sharp decline in demand caused by Tesla's increasing debt burden, market saturation, and continued global trade tensions.
The core assumption is that the market sales of China will only reach about half of the previous prediction of Morgan Stanley.
The number 10 US Dollar was so dazzling that it set all Financial Media terminals on fire almost instantly.
The title of Bloomberg is "Morgan Stanley: In the worst case, the stock price of Tesla may fall to 10 US Dollar";
The title of Reuters is more straightforward - "In the past, most bulls turned against each other, Morgan Stanley slashed the extreme target price of Tesla to 10 US Dollar";
The CNBC anchor read this number three times during the midday show. His tone was not analysis, but surprise.
Even Jim Cramer, the well-known CNBC financial program host, said on the show,
"This is really crazy" to set a target price of 10 US Dollar for a stock with 200 US Dollar per share.
Just say it's a "I want to be famous, let's discuss me" gimmick.
But the media was shocked and the market was real.
The stock price of Tesla fell immediately at the opening of the market. At the beginning of the trading, it was close to 196 US Dollar, setting a new low in the past two and a half years.
It closed at 192.73 US Dollar, closing below 200 US Dollar for the first time since the end of 2016.
This forms a cruel resonance with the bearishness of Morgan Stanley.
When the news reached Fremont, Elon Musk was not filtered by any public relations team.
The media screenshot of this research report was forwarded directly on Twitter, with a short and violent response.
He said, Morgan Stanley people have never driven a Tesla, and they don't bother to understand what we are doing.
The only thing they know how to do is release these incredible extreme numbers when the stock price is most vulnerable to coordinate the Short Sellers harvest.
He said that the lower valuation of a company that holds Model 3, is building a factory in China, and has more than 2 billion US Dollar in cash on its books is set at 10 US Dollar.
"This is no longer analysis, this is openly cooperating with Short Selling."
After Elon Musk's words were published, Wall Street's analyst circle also exploded.
Someone said in the comment column of Bloomberg that he "lost emotional control again on Twitter",
Some people also say privately that Adam Jonas's 10 US Dollar extreme goal is indeed more of an attention-seeking clickbait act--
But that doesn't matter anymore.
The important thing is that the number 10 US Dollar has been shot into the market like an arrow.
No matter how Elon Musk refutes it, it leaves a thorn in the heart of every trader.
Also dissatisfied with Morgan Stanley is Shen Zhiyi.
After reading it, she put her phone back on the coffee table and leaned back into the sofa. Her voice was very soft but there was a tension that could not pretend to be relaxed.
"Xiao Chen,10 US Dollar. If the extreme prediction of Morgan Stanley comes true, the more than 16 million shares of Tesla pledged by Era Vanguard will be completely worthless."
"10 US Dollar is an extreme assumption of the worst-case scenario, not a target price.
Morgan Stanley even maintains the target price of 230 US Dollar, and the rating has not been lowered.
But Adam Jonas chose this time to drop the extremely pessimistic hypothesis from 97 to 10. This was not the need of Technical Analysis, but the cooperation of public opinion.
He is providing ammunition to Short Sellers. But-"
He put the cup in his hand back on the coffee table, and the bottom of the cup hit the glass surface with a light and clear crunching sound.
"There are also people in the market who are openly questioning the rationality of this number.
A spokesperson for Morgan Stanley declined to respond to Cramer's criticism, and this silence speaks volumes."
Just after explaining, Zhao Chen's phone rang. It was Lin Shicheng.
He knew what the other party wanted to say on the phone, but at the moment he needed to talk to Elon Musk.
So, he hung up the phone number Lin Shicheng.