Tesla Banished to “Demand Hell”

Futures are ticking higher this morning as investors push global growth concerns to the back burner.

Global markets inched higher this morning as China’s March exports jumped more than 14% compared to last year, MarketWatch reports, handily topping estimates. If the averages maintain their pre-market trajectories, new 2019 highs will carry us into the weekend.

But there’s still plenty of upcoming market-moving news on the horizon. First-quarter earnings are starting to trickle in, with JP Morgan (NYSE:JPM) set to open at new year-to-date highs after the bank topped analyst expectations, crediting its earnings beat to “a strong economy.”

Another Dow stock, Chevron Corp. (NYSE:CVX) is making headlines as it announces a proposed $33 billion buyout of Anadarko Petroleum Corp. (NYSE:APC). The Street’s not sure what to make of this deal just yet, sending Chevron shares deep into the red to kick off the trading day.

As Wall Street sifts through this morning’s fresh earnings reports, Telsa is slammed with more bad news…

Tesla Inc. (NASDAQ:TSLA) shares fell nearly 3% yesterday after Asian-market newspaper Nikkei reported that Panasonic is pulling the plug on its partnership with Tesla to expand the company’s Nevada Gigafactory.

Citing concerns with Tesla Model 3 demand, Panasonic and Tesla didn’t think it made financial sense to expand the Gigafactory. According to the report, Panasonic is also suspending its investments in Tesla’s Shanghai plant.

Telsa has already bashed the report in a statement, claiming the company’s relationship with Panasonic is still peachy and they’re getting more bang for their buck improving existing production equipment. Still, the news is stoking Wall Street’s fears over bigger problems that could sink Tesla’s prospects just at the company unveils its new Model Y SUV.

“Tesla has a demand problem,” Vertical Group analyst and prominent Tesla bear Gordon Johnson told Business Insider. “The demand problem is the Model 3 is not a mass-market car. It’s a luxury car.

“Elon Musk has talked about production hell, delivery hell. I think what they’re in now is demand hell.”


This story continues to develop this morning, as the WSJ just reported Tesla will stop selling it’s the $35,000 base model online. Customers will now have to call or go to a Tesla store to order one, raising the minimum price of the Model 3 by nearly 13% for online shoppers, the WSJ reports.

As for Elon, he’s too busy fawning over SpaceX’s Falcon Heavy launch last night to worry about earthbound issues…


Finally, the market’s handing you the perfect opportunity to book double-digit gains ahead of the weekend.

Last month, we zeroed in on cybersecurity stocks as the group snapped back from its sharp March drop. The hard reset gave us the perfect opportunity to jump on a fast-moving play in the sector as it prepared to attack its recent highs.

Okta Inc. (NASDAQ:OKTA) didn’t disappoint. After a one-day dip below its 50-day moving average following a strong fourth-quarter earnings report, OKTA pulled an about-face and posted a breakout to new 2019 highs.

As we discussed when we first jumped on this play, the sold-out bulls were eager to chase the shares they jettisoned during the brief selloff. Eager buyers have now pushed your trade to gains of more than 17% in just four weeks.


OKTA has closed higher for five consecutive trading days as it pushes toward the $100 mark for the first time. Let’s take this opportunity to sell into strength and book a solid winner to close out the trading week.

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Greg Guenthner

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Greg Guenthner

Greg Guenthner, CMT, is the editor of Opening Bell Fortunes and Seven Figure Signals. He has been with Agora Financial/Seven Figure Publishing since 2005. In 2019, the average position in Greg’s Sunrise Fortunes portfolio outperformed the S&P 500 by 1.65x.

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