TRADE SETUP

Where do we stand fundamentally?

• Tesla’s sales in Europe have dropped significantly year-over-year.

• Analysts remain mixed: some are very bullish (boosting price targets to $500+), others warn of execution risk and weakening fundamentals.

• The company is pushing into autonomous / robotic ventures (robotaxis, Optimus), but those are still speculative and face technical, regulatory, and competitive hurdles.

• Tesla criticized proposed regulatory changes that could eliminate a lucrative revenue stream from selling regulatory credits to other automakers.

For the rally to continue, we need a sustained breakout above 450. As long as we are below this levels look for the significant pullback to happen. A break below yesterday low 423 would lead to a downside acceleration. Risk to reward for a short is much better then for the long trade at this point taking into an account possible overall market pullback.

_{I am taking a near-term short-trade entry with an SL above 460 to target 345. You can buy put options as well.}