Elon Musk suffered a brutal rebuke this week after major Tesla investor T. Rowe Price revealed that it had dumped 81% of its Tesla, Inc. (NASDAQ:TSLA) stock
T. ROWE PRICE UNLOADS TESLA SHARES – AND IT’S NOT ALONE
T. Rowe Price held just 1.7 million shares of Tesla on March 31 this year, down substantially from the 8.9 million shares it owned at the end of 2018. Its stake in the EV company is now at its lowest level since 2013.
The fund manager’s massive cut in its TSLA position doesn’t seem entirely surprising, as the stock has lost more than 30% of its value so far in 2019. The S&P 500 has gained more than 14% over the same period, making Tesla stock a laggard when compared to the broader market.
Not surprisingly, major Tesla shareholders are exiting their positions despite Elon Musk’s efforts to pump Tesla stock this year by making wild claims.
Earlier in May, it emerged that three of Fidelity’s mutual funds sold a combined 1.4 million shares. The asset manager is Tesla’s second-largest institutional investor, ahead of T. Rowe Price.
T. ROWE PRICE’S EXIT SIGNALS LACK OF CONFIDENCE
The fact that T. Rowe Price divested its Tesla position while also pouring capital into rivals such as Cruise Automation indicates that institutional investors don’t have much confidence in Elon Musk’s self-driving dreams.
The fund manager led a $1.5 billion investment Cruise Automation earlier this month, giving the latter a much-needed cash infusion as it seeks to launch its autonomous vehicles by the end of the year.
It is not surprising to see that investors who were once bullish about Tesla are now looking elsewhere to ride the self-driving boom. After all, Musk has given an unrealistic timeline of putting fully-autonomous cars on the roads by next year while consumer watchdogs raise serious questions about the safety of Tesla vehicles.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 275.62.
The projected upper bound is: 248.81.
The projected lower bound is: 205.93.
The projected closing price is: 227.37.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black 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 30.4131. 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 34.83. 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 13 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 -111.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 10 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 sell 3 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -3.620 at 228.330. Volume was 20% below average (neutral) and Bollinger Bands were 6% narrower than normal.
Open High Low Close Volume___
229.490 231.000 226.500 228.330 7,481,071
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 240.34 263.62 303.03
Volatility: 49 52 74
Volume: 9,743,254 10,034,789 9,597,011
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 24.7% below its 200-period moving average and is in an downward 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 bearish on TSLA.O and have had this outlook for the last 24 periods.