Tesla, Inc. (NASDAQ:TSLA) Settles Zoox Lawsuit, Stock Now Rallied 70% YTD

Tesla, Inc. (NASDAQ:TSLA) Settles Zoox Lawsuit, Stock Now Rallied 70% YTD

Tesla (TSLA) has now settled a lawsuit with California-based robotics company Zoox, Reuters reports. In March 2019, Tesla lawyers filed a lawsuit against four former employees and Zoox.

The company claimed that these employees stole proprietary information and trade secrets for developing warehousing, logistics and inventory control operations.

“Zoox acknowledges that certain of its new hires from Tesla were in possession of Tesla documents pertaining to shipping, receiving, and warehouse procedures when they joined Zoox’s logistics team,” Zoox said.

According to the settlement, Zoox will now pay Tesla an undisclosed amount and undergo an audit checking that none of its employees have retained or are using Tesla’s confidential information.

At the same time, Credit Suisse analyst Dan Levy upgraded TSLA from sell to hold while boosting his price target from $415 to $580. Levy believes that Tesla now “competitively has more edge in the transition to EV [electric vehicles] as coronavirus disruption will make it more difficult for legacy automakers to balance the long-term shift to EV in the face of near-term cycle disruption.”

Meanwhile Goldman Sachs analyst Mark Delaney re-initiated coverage of Tesla with a bullish Buy rating and $864 price target (22% upside potential). “We are positive on Tesla because we believe that the company has a significant product lead in EVs, which is a market where we expect long-term secular growth,” Delaney told investors on April 14.

Tesla’s stock has now rallied 70% year-to-date, and 30% in the last five days alone. Overall, TipRanks reveals that analysts have a Hold consensus on Tesla stock with a $511 average analyst price target. Due to the stock’s recent rally, this indicates a 28% drop from current levels.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 871.15.

The projected lower bound is: 551.00.

The projected closing price is: 711.08.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 8 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 92.5119. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 65.76. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 17 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 268.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 16 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 12 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 58.940 at 709.890. Volume was 100% below average (consolidating) and Bollinger Bands were 12% wider than normal.

Open     High      Low     Close     Volume___
698.970 741.880 692.430 709.890 82,685
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 548.44 648.24 397.96
Volatility: 117 162 97
Volume: 15,523,092 20,640,654 12,588,146

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 INC gapped up today (bullish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TESLA INC is currently 78.4% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 0 periods.

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