Social Data Is Turning Against Tesla

Last month we told you that Tesla Motors Inc TSLA was ready to rally based on the LikeFolio data we were looking at at the time. That was with the stock at $152/share.  

Here's how the stock has performed since our call on the LikeFolio podcast:

That's a 57% gain in a matter of 5 weeks.

Awesome!

What is social data looking like for Tesla now?

We also said we would check back in on the social data for Tesla prior to their March 31 unveiling of the Model 3.  Here's what the social data is looking like now:

Screenshot from LikeFolio app

As you can see, we've actually seen a reversal in the social volume for Tesla, as purchase-intent volume has dropped over the past 30 days.

That means less people are talking about the company's products than they were in Jan and Feb— DEFINITELY not something you want to see leading into a big event.

On top of that, with the stock up over 50% from our original bullish call, this provides a bearish divergence opportunity:  The LikeFolio data is showing a negative move in consumer interest while the stock has moved markedly higher.

The play from here

As a result of this shift in consumer data, we are not only removing our bullish position on TSLA (and booking profits of over 50% in just 6 weeks), but also initiating a bearish outlook on the stock from here.

Because we don't necessarily want to short-sell companies like Tesla, we discuss exactly how we are going to position bearish on Tesla in today's LikeFolio broadcast… so listen up!

– LikeFolio provides research and insights on companies based on purchase intent and sentiment data gathered from consumers on social media.