Tesla (NASDAQ:TSLA) Destroying Short Sellers

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Price: $439.67

Tesla Outlook

Tesla’s 425% stock run-up year-to-date has made it the second-best performer in the Nasdaq 100, bested only by Zoom Video Communication’s (ZM) more than 700% gain.

The company’s third-quarter results come after the company reported a record number of deliveries for the three months to September, bucking the trend of the broader auto industry, after most legacy automakers reported another quarter of declines.

Yet, Tesla’s 139,300 third-quarter deliveries still put the company’s previously stated goal of around 500,000 deliveries for 2020 at a stretch, according to most Wall Street analysts. For the year-to-date, Tesla has handed over nearly 319,000 electric vehicles, driven mostly by demand for the lower-priced Model 3 and newer Model Y.

While we expect Tesla to maintain its target of 500k deliveries in ‘20, we believe it will be hard pressed to reach its target, as it would need to produce near capacity for all of 4Q. Yet even if Tesla misses its 500k target, we expected investors to look through it as the longer-term growth narrative is intact.”

Analysts anticipate 2020 volume will be about 486,000, which would still be within the guidance range CEO Elon Musk offered at the company’s shareholder meeting in September. There, Musk said full-year delivery growth would be between 30% to 40% over last year, implying a range of 477,750 to 514,500 cars. But the Street has homed in on that half-million figure, however, after Tesla said at the beginning of the year – but before the start of the pandemic – that deliveries should “comfortably exceed 500,000.”

Investors are also apt to focus on Musk’s discussions Wednesday around Tesla’s newly laid-out goals around manufacturing its own “tabless” batteries in-house, which are set to help reduce the company’s costs and improve the cars’ power and range.

These new batteries are expected to help the company eventually develop a $25,000 electric car, making the price to consumers much more appealing and competitive against the prices of existing combustion-engine vehicles. The new battery technology is not likely to reach mass production until 2022, however.

Business Summary

Tesla, Inc., formerly Tesla Motors, Inc., designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products.

The Company operates through two segments: Automotive, and Energy generation and storage.

The Automotive segment includes the design, development, manufacturing, and sales of electric vehicles.

The Energy generation and storage segment includes the design, manufacture, installation, and sale or lease of stationary energy storage products and solar energy systems to residential and commercial customers, or sale of electricity generated by its solar energy systems to customers.

The Company produces and distributes two fully electric vehicles, the Model S sedan and the Model X sport utility vehicle (SUV). It also offers Model 3, a sedan designed for the mass market.

It develops energy storage products for use in homes, commercial facilities and utility sites.

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Upwards

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

The projected upper bound is: 515.27.

The projected lower bound is: 369.74.

The projected closing price is: 442.51.


A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 27 white candles and 23 black candles for a net of 4 white candles.

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 56.2374. This is not an overbought or oversold reading. The last signal was a sell 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 54.27. 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 sell 31 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 63. This is not a topping or bottoming area. The last signal was a sell 0 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 3 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -9.210 at 439.670. Volume was 100% below average (consolidating) and Bollinger Bands were 34% narrower than normal.

Open    High    Low     Close    Volume
454.440 455.950 438.850 439.670  50,742
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period     50-period      200-period
Close:           436.37        405.65         228.73
Volatility:      42            118            116
Volume:          36,336,680    72,787,888     83,461,104

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 92.2% 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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