Market perception of Tesla, Inc. (NASDAQ:TSLA) changing

Market perception of Tesla, Inc. (NASDAQ:TSLA) changing

Market perception of Tesla, Inc. (NASDAQ:TSLA) changing

Morgan Stanley sees a big uptick in Tesla’s stock if the Cybertruck becomes successful. 

The stronger “bull case” for Tesla came Thursday from Morgan Stanley analyst Adam Jonas who predicted the share price will touch $500 if the Cybertruck turns successful and the new factory in China does well.

Morgan Stanley’s new bull case on Tesla suggests a 50 percent increase from current stock price, reports CNBC. Nevertheless, Morgan Stanley did not make any change in the “base case” price target of $250 on Tesla share.  

Jonas has been bullish on Tesla for long and maintains a positive outlook on electric vehicles.

Tesla CEO Elon Musk had projected that the truck has 250,000 pre-orders. Jonas is assuming at least 40 percent of them would translate into an actual sale by 2024, per Bloomberg.

 The analyst said the stock will boom if Tesla’s Gigafactory in China hits a production rate of 450,000 units per year by 2024/2025. On Thursday, Tesla stock was up 0.7 percent in after-hours trading from the close of $330.37 a share. 

Market perception of Tesla changing

The analyst sees the bull run calibrating over the perception of Tesla as an auto brand.  He said: “We are not bullish on Tesla longer term, over time, we believe Tesla could be perceived by the market more and more like a traditional auto OEM original equipment manufacturer; we are prepared for a potential surge in sentiment through 1H20 but question the sustainability.”

Alaska offers Tesla resources to produce Cybertruck

Meanwhile, reports said Alaska governor Governor Mike Dunleavy invited Tesla CEO Elon Musk to consider using the state’s resources to build the company’s premium vehicles.

The governor also mentioned the Cybertruck in a twitter message.  But Tesla is yet to announce details of plant locations where it would produce the electric pickup truck.

The Teslarati report also notes that Tesla facilities have served as potential economic boosters to many areas where they came up. Examples include Reno in Nevada, and maybe Alaska wanted to replicate that economic boom in its region. 

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 360.36.

The projected lower bound is: 304.44.

The projected closing price is: 332.40.

Candlesticks

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 30 white candles and 20 black candles for a net of 10 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 55.6775. This is not an overbought or oversold reading. The last signal was a buy 3 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 52.94. 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 8 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 -70. This is not a topping or bottoming area. The last signal was a buy 3 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 10 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -2.660 at 330.370. Volume was 52% below average (consolidating) and Bollinger Bands were 33% narrower than normal.

Open     High      Low     Close     Volume___
332.830 334.423 327.250 330.370 3,736,976
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 334.88 299.04 256.62
Volatility: 41 61 59
Volume: 7,328,044 8,882,565 9,348,968

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 28.7% above its 200-period moving average and is in an downward trend. Volatility is low 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 2 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH