A Merger between Fiat Chrysler and Peugeot owner PSA Group marks the beginning of the end of Elon Musk’s dominance in the electric-vehicle space
Tesla has been put on notice.
The $50 billion merger between Fiat Chrysler and Peugeot owner PSA Group marks the beginning of the end of Elon Musk’s dominance in the electric-vehicle space, according to the head of one private-equity firm.
The deal creates the fourth-largest automaker by sales and a “fierce competitor” in the burgeoning EV market that is currently dominated by Tesla, according to Eric Schiffer, CEO of the Los Angeles-based private-equity firm Patriarch Organization.
Tesla’s current market capitalization is $57.84 billion, down from its record peak of $64.75 billion on August 7, 2018, according to Dow Jones Market Data Group. The company continues to be a target for short-sellers, those who bet the shares will fall.
Even so, the outlook for the industry and Tesla looks promising.
The global EV market, which is about 4 million units in 2019, is expected to grow to 21 million units by 2030, according to a study from Deloitte.
Tesla currently commands 75 percent to 85 percent of the electric-vehicle market in the U.S., according to CleanTechnica. A big part of Tesla’s success in the U.S. is the Model 3 sedan, which itself accounts for 60 percent to 70 percent of all electric-vehicle sales in the country.
Last month, Tesla reported a third-quarter profit of $143 million, but that was after losing $2 billion last year and money in both the first and second quarters of this year. Even so, that’s proven to be far better than a lot of the competition.
Tesla’s return to profitability came as other rivals have succumbed to the whims of the market.
Both Dyson and Faraday Future shut down their aspirations for electric vehicles while Nio, often referred to as the “Tesla of China,” was forced to raise $200 million from CEO William Li and the Chinese gaming giant Tencent, one of its largest shareholders. The Chinese automaker has burned through cash as it has struggled to keep up with its delivery targets and suffered through battery production issues.
“For years, investors have been concerned that Tesla must eventually face a wave” of competing all-electric vehicles that would “substantially erode its market and competitive position,” wrote Morgan Stanley analyst Adam Jonas. “Here we are more than seven years after the Model S launch and, while there have indeed been new product introductions from the likes of Jaguar, Porsche and VW, the state of play in the market remains fairly peripheral.”
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 270.92.
The projected upper bound is: 346.24.
The projected lower bound is: 292.29.
The projected closing price is: 319.26.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 32.6206. This is not an overbought or oversold reading. The last signal was a sell 4 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 73.70. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 72 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 59. This is not a topping or bottoming area. The last signal was a sell 4 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 18 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -0.250 at 317.220. Volume was 14% below average (neutral) and Bollinger Bands were 180% wider than normal.
Open High Low Close Volume___
319.620 323.510 316.118 317.220 6,943,417
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 310.43 253.93 252.89
Volatility: 107 64 59
Volume: 13,941,921 8,339,336 9,303,038
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.
TESLA INC is currently 25.4% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into TSLA.O (mildly bullish). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 40 periods. Our momentum oscillator is currently indicating that TSLA.O is currently in an overbought condition.
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