The Electric-Car King Turns 'Bearish' in the Power Gauge

By Vic Lederman, editorial director, Chaikin Analytics   Extreme winter weather is gripping large parts of the U.S... Specifically, the recent arctic blast has put temperatures well below freezing in Chicago. And the city's electric-vehicle ("EV") owners are finding out exactly what that means for their cars. Chicago has 21 so-called "superchargers." Those are the "fast charging" stations built by electric-car king Tesla (TSLA). But in Chicago, these stations are now littered with dead Teslas. Put simply, the lithium-ion batteries that electric cars rely on don't play well with the extreme cold. Now, some sources recommend not even attempting to charge lithium-ion batteries when the temperature drops below freezing. (And functionality isn't so great above 80 degrees Fahrenheit, either.) This is a massive problem for EV owners. They've bought into the dream of electric cars. But their cars struggle in many weather conditions. Chicago residents are learning that firsthand. And it's a PR nightmare for Tesla. But that's not the company's only problem. As I'll explain today, Tesla is facing another issue – and its stock recently turned "bearish" in the Power Gauge...     Recommended Links:

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Is This AI's Biggest Breakthrough to Date?

In the past year, AI has amazed us all with its achievements. It can predict weather, recommend winning stocks, create original art, write computer code, detect skin cancer – and, shockingly, it can do all these things better than most humans. But when you see its latest leap (revealed in on-location footage), you may want to pinch yourself! Get the full scoop here.   It looks like the allure of Tesla's cars is fading quickly. And we know that because of rental-car company Hertz (HTZ). Back in 2021, Hertz made a massive bet on EVs. The company said that it would buy roughly 100,000 Teslas for its fleet. At the time, Hertz's interim CEO Mark Fields said "electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest." But demand and interest were nowhere near what the company thought it would be. It turns out that people want their rental cars to "just work." And the hassle of navigating charging stations and an unproven technology are still off-putting for most folks. The recent winter wipeout in Chicago shows that consumer fears aren't entirely off base. Whether owning or renting, EVs come with new struggles. That's not the only problem... Hertz has also disclosed that its Tesla fleet is expensive to repair. The tech-heavy cars cost more to fix than traditional gas-powered cars when they wreck. Because of all this, Hertz is selling roughly 20,000 of the EVs – mainly Teslas – in its fleet. And the company hasn't been shy about explaining why it's bailing on its EV vision. Not surprisingly, investors are taking notice. And so is the Power Gauge. As you can see in the chart below, Tesla turned "bearish" in our system at the beginning of January...     The stock has also been firmly underperforming the broad market in recent months. Over the past six months, Tesla is down about 24%. Meanwhile, the S&P 500 Index is up about 5% over that same time frame. That's a huge spread. And it's one worth paying attention to. We also want to keep a close eye on Tesla's rating from the Power Gauge – which today stands at "very bearish." It tells us that the company is struggling overall across the 20 specific factors our system measures. And it means that Tesla is likely to continue to underperform in the coming months. Put simply, you're better off putting money to work elsewhere. Good investing, Vic Lederman

Market View

Major Indexes and Notable Sectors     # HLD:     BULLISH     NEUTRAL     BEARISH   Dow 30 -0.610% 14 14 2 S&P 500 -0.370% 150 272 76 Nasdaq -0.010% 43 42 14 Small Caps -1.240% 659 931 327 Bonds -1.780% — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain   Bullish . Major indexes are mixed. *  *  *  *

Sector Tracker

Sector movement over the last 5 days Information Technology +1.95% Communication +0.52% Staples -0.45% Health Care -0.46% Real Estate -0.63% Discretionary -0.66% Industrials -0.74% Financial -1.09% Materials -1.48% Energy -1.98% Utilities -2.85% *  *  *  *

Top Movers

Gainers AMD +8.31% WDC +4.45% AZO +3.91% ORLY +3.90% DPZ +3.56%   Losers BA -7.89% FSLR -7.07% JCI -6.99% GNRC -5.93% ANSS -5.50% *  *  *  *

Earnings Report

Reporting Today RATING BEFORE OPEN AFTER CLOSE NTRS, SCHW USB CFG, DFS, KMI, PLD Earnings Surprises BAC  Bank of America Corporation  Q4 $0.35  Missed  by  $-0.29 C  Citigroup Inc.  Q4 $0.84  Beat  by  $0.14 WFC  Wells Fargo & Company  Q4 $1.48  Beat  by  $0.24 JPM  JPMorgan Chase & Co.  Q4 $3.04  Missed  by  $-0.56 PNC  The PNC Financial Services Group, Inc.  Q4 $3.60  Beat  by  $0.46 *  *  *  *   You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You’re receiving this e-mail at billdaly996@gmail.com. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice. © 2024 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.

 

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