Tesla, Inc. (NASDAQ:TSLA) stock (TSLA) tumbles below $400 on factory shutdown order

Tesla, Inc. (NASDAQ:TSLA) stock (TSLA) tumbles below $400 on factory shutdown order

As a volatile stock, Tesla (TSLA) has taken a strong hit in this market correction triggered by the coronavirus crisis. Now the stock tumbles even further, below $400 a share, as the automaker is forced to shut down their Fremont factory.

As we reported earlier this week, it looked like Tesla was trying to defy the shelter-in-place order in the Bay Area by trying to keep its factory going.

However, the local sheriffs’ department got involved and declared Tesla not an “essential business.” It said that the factory, where Tesla produces most of its vehicles, must obey coronavirus shutdown order.

Update: Tesla Fremont factory is still operating despite Sheriff’s order

The stock plunged by as much as 10% in pre-market trading after the news was announced.

The stock was trading at $395 per share at the time of writing versus over $900 per share just a month ago.

Several Wall Street analysts, who increased their price target following Tesla’s run earlier this year, have been revising their target price on Tesla following the coronavirus crisis, which is expected to affect the global automotive market in a significant way this year.

They now expect Tesla’s deliveries to be slashed by almost 100,000 units due to the crisis and the economic downturn.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 585.40.

The projected lower bound is: 281.29.

The projected closing price is: 433.35.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 45.0702. This is not an overbought or oversold reading. The last signal was a buy 1 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 33.65. 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 2 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 -75. This is not a topping or bottoming area. The last signal was a buy 1 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 sell 19 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 6.760 at 434.290. Volume was 1% below average (neutral) and Bollinger Bands were 139% wider than normal.

Open     High      Low     Close     Volume___
433.600 442.000 410.500 434.290 16,454,549
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 491.27 653.47 373.97
Volatility: 201 151 90
Volume: 21,376,306 21,636,180 12,109,886

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 is currently 16.1% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume out of TSLA.O (mildly bearish). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 14 periods.

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