Barchart.com's Chart of the Day - Tesla According to Peter Lynch
Jim Van Meerten - Barchart.com - Tue Sep 18, 10:48AM CDT
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 TSLA - Tesla Inc
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TSLA259.59+0.81+0.31%

Today's Barchart Chart of the Day will be the auto maker Tesla (TSLA). Today's coverage will be a little different because I did not use Barchart technical indicators to sort for this stock. I'm making a personal observation.

Years ago I read some articles and books authored by Peter Lynch when he was running the Magellan Fund. He shared how he went beyond the numbers before he made a buy. He found out where the product was sold. Observed the traffic in and out of the sales locations not only on the number of people going in and out but counted how many people carried out bags of purchases. He interviewed sales clerks and asked if the customers were asking about the product. He asked if the customers were returning the product and why. He asked about the manufacturer's return policies, and how that was working.

This morning when I was at the Porsche dealership having my car serviced I noticed a big lack of inventory. I asked why and was told they were having trouble keeping up with demand. Most of the cars were pre-ordered and backlogged. New cars were picked up by the customers as soon as they were delivered. Even the used car inventory was low.

That reminded me of what I observed last year at the Tesla dealership down the street from Porsche. Every car was pre-sold. There was no inventory on the lot not even a Demo to test drive.

Today when I passed the lot have things changed here in Charlotte. There were several hundred cars in the lot. Every parking space was filled and many were double parked.

In press releases I've read, Musk talked about production problems and how production was having a hard time keeping up with demand. The dealership's lot tells a quite different story. Why is there so much inventory on the lot if they are selling like hotcakes?

According to the Peter Lynch Analysis something doesn't add up. Let's look at the charts and numbers:

TSLA

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Barchart technical indicators:

Fundamental factors:

Caveat emptor --- Let the buyer beware!