[Applause] can Tesla the stock keep rebounding now that they've enlisted president Trump as car salesman and chief this stock roared after Trump won the election because CEO Elon Musk spend a fortune to help put him in office and Wall Street figured that being titled with Trump pay off right in the last couple months that the stocks just been obliterated now some of that's because must playing a much bigger and more controversial role in the administration than most of us expected and not paying enough attention to business controversy is not good for sales we don't like
controversy especially overseas some it's simply that Tesla's a highflying growth G in a market that lost all appeti for highflying growth names although today it seemed like it was could to get it back now yesterday the stock started rebounding and today attacked on another 7.6% so got to ask could this be the real deal now listen it's hard to predict the fundamentals here in large part because Tesla trades on the potential of its self-driving technology something I very much believe in but that could be years down the road it's also hard to put a value
on your CEO being the rightand man of the president no one's ever done that it's definitely worth something but how the heck you put a number on that what's the PE multiple on that so rather than trying to game this one out you know what I rather go off the charts and I never do this at the end of the show but this is really important because we're going off the charts with Larry Williams he's the legendary technician and Market historian who's been the best in the business since before I learned how to draw it
he's written over a dozen books created a ton of proprietary technical indicators and most important he's got a stunning track record especially over the past 5 years and I rever him always have Larry's the one who called the co bottom for instance in April 2020 back when just about everyone was terrified that we be stuck in a prolonged government mandated recession and you know what he's doing tonight he's calling the bottom in Tesla first I want you take a look at the weekly chart of Tesla paired with Larry's proprietary valuation model uh according to this
model Tesla's finally reached undervalued territory and when the stocks come down to these levels in the past it typically attracts real buyers leads to a big bounce speaking of buyers check out this chart of Tesla's paired with Larry's measure of professional accumulation even as the stocks come down this picture shows very aggressive buying not selling but buying that's typically an arbinger of higher prices professional money managers have begun adding to positions while individual investors have been throwing in the tow that's what you've seen and it usually means that you should be buying alongside of these
investors I agree but it's just the right moment to pounce on Tesla or could it have another leg down the brutal stock market okay I want you to take a look at this daily chart with Tesla true seasonal pattern in blue okay Larry loves to look at how stocks tend to trade over the course of the year he goes over the history then finds the seasonal pattern and it plays out time after time the true seasonal pattern in blue shows the Tesla typically begins rallying at this time of the year sure enough the Stock's already
going up so I've got to tell you I'm with that now lar also likes to hunt for cycles that seem to be repeating themselves beyond the annual seasonal cycle now he he'll identify a bunch of these then combine them together into a wave that predicts where the stock is likely headed so here's what Tesla looks like with this cycle forecast attached to it the forecast is blue on the way up gray on the way down right now suggest the Tesla should be ready to Rally maybe furiously with a pullback creating another buying opportunity around mid
June Larry notes that we've seen this wave in Tesla stock numerous times before historically stocks ried 80% of the time during this time period I think that's pretty good odds so if you believe Larry Williams and he's earned a lot of credibility over the years then this is a gentleman starer Electric engines moment for Tesla Assuming he's right the stocks rebound of the past couple days is just the beginning of a huge move and I got to tell you all aboard I'm with lry I'd like to say as always bu Market sum my PR just
for you right here M money I'm jimer see you [Music] tomorrow don't miss a second of Mad Money follow at Jim Kramer on X have a question tweet Kramer # mad mentions send Jim an email to madmoney cnbc.com or give us a call at 1 00743 CNBC miss something head to Mad money. cnbc.com
