Tesla Motors Inc (NASDAQ:TSLA) Busted or Booming?

Tesla Motors Inc (NASDAQ:TSLA) Busted or Booming?

Tesla Motors Inc (NASDAQ:TSLA) Busted or Booming?

The Wall Street Journal Reported

On Thursday, the NHTSA said “it is examining the potential suspension issue on the Tesla Model S, and is seeking additional information from vehicle owners and the company. NHTSA learned of Tesla’s troublesome nondisclosure agreement last month. The agency immediately informed Tesla that any language implying that consumers should not contact the agency regarding safety concerns is unacceptable, and NHTSA expects Tesla to eliminate any such language.”

elon musk photo
Photo by Bill David Brooks

CNBC Reported the Details

Not long after, Tesla denied all allegations. In a blog post late Thursday night, the electric car maker, led by Elon Musk, said that there is no safety defect with the suspension in either the Model S or Model X. The blog addressed the specific example of “gpcordaro” and said it was an “unusual case”.

“With respect to the car that is discussed in the blog post that led to yesterday’s news…the suspension ball joint experienced very abnormal rust. We haven’t seen this on any other car, suggesting a very unusual use case. The car had over 70,000 miles on it and its owner lives down such a long dirt road that it required two tow trucks to retrieve the car. (One to get the car to the highway and one to get it from the highway to the service center.) When we got the car, it was caked in dirt.”

tesla photo
Photo by BitBoy

Photo by Heisenberg Media

While we still feel TESLA is overvalued the technicals are strong, for now we are looking to short the company over $230, our target here is low, Tesla may only be worth $50 – $100

TESLA MOTORS closed down -6.160 at 229.360. Volume was 19% below average (neutral) and Bollinger Bands were 42% narrower than normal.

Open High Low Close Volume___
234.980 235.330 227.060 229.360 4,492,075

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 224.68 232.49 221.46
Volatility: 40 43 53
Volume: 3,668,335 5,460,103 4,637,589

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TESLA MOTORS is currently 3.6% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 2 periods.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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