Tesla, Inc. (NASDAQ:TSLA) $35,000 Model 3 coming
Tesla (TSLA) had a tough start of the year on the stock market despite having delivered profits for two quarters in a row – a first ever for the company.
But now it jumps up in pre-market today after two positive notes from Wall Street analysts seeing some upside.
Canaccord Genuity is out with a new note to clients today stating that the company managed to remove some of their concerns.
Analyst Jonathan Dorsheimer wrote in the note:
“We believe the last two quarters and recent guidance for Q1 have removed significant concerns for both production capability and profitability of the critical Model 3,”
More specifically, Dorsheimer believes that the current cash flow and cash position should put the concerns to rest over the almost $1 billion convertible note that Tesla needs to pay back next month:
“With the strong operating cash flow generation of $1.23B and cash on the balance sheet of $3.7B, the liquidity concerns and convertible note repayment are no longer valid concerns in our view.”
As for the future, the analyst can now see Tesla reducing Model 3 costs enough to reach the promised $35,000 base price:
“We view the recent string of price cuts as further proof that the cost cutting and right sizing that the company has undertaken are resulting in concrete movement towards the ultimate goal of an affordable $35,000 Model 3,”
Canaccord upgraded Tesla’s stock (TSLA) to buy from hold – raising its price target to $450 from $330.
Jonathan Dorsheimer is ranked #4,546 out of 5,137 Analysts on TipRanks with a success rate of 40% and an average return of -4.4%. He has been maintaining a hold rating on Tesla’s stock over the last year:
Wedbush is also out with a new note on Tesla and they are still positive on the stock, but they are being more cautious.
Analyst Dan Ives writes:
“Tesla has now shifted from a production story to a demand story, with more steady state weekly Model 3 production poised to hit 7,000 per week by the end of 2019 and enough production capacity now between Fremont/Giga to hit the company’s 360,000 to 400,000 vehicle delivery guidance for 2019,”
He has also been encouraged by Tesla lowering the price of Model 3 and he sees further demand from the upcoming $35,000 version.
That said, Ives believes there’s still work to be done for the profitability of the program:
“Overall, the profitability picture for 2019 and the all-important Model 3 demand trajectory in Europe for Tesla looks encouraging for Musk & Co., but there is clearly heavy lifting ahead around Europe logistics/cost-cutting/driving incremental US demand that will remain overhangs and thus make Tesla a ‘prove me’ story the next few quarters,”
Wedbush has an ‘Outperform’ rating on Tesla’s stock (TSLA) and a price target of $390.
Dan Ives is ranked #733 out of 5,137 Analysts on TipRanks with a success rate of 60% and an average return of 5.3%. He has been maintaining a buy rating on Tesla’s stock over the last year:
Tesla’s stock (TSLA) was up over 2% – trading at $312 in pre-market this morning following those two notes.
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 319.80.
The projected upper bound is: 348.67.
The projected lower bound is: 275.76.
The projected closing price is: 312.22.
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 27 white candles and 23 black candles for a net of 4 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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.
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 36.9312. This is not an overbought or oversold reading. The last signal was a sell 2 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 48.30. 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 105 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 80. This is not a topping or bottoming area. The last signal was a buy 11 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 6 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 7.040 at 312.840. Volume was 16% below average (neutral) and Bollinger Bands were 9% narrower than normal.
Open High Low Close Volume___
311.600 318.600 310.500 312.840 7,129,713
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 310.31 329.12 315.93
Volatility: 37 72 74
Volume: 7,435,263 7,617,208 9,075,738
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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TESLA INC is currently 1.0% below its 200-period moving average and is in an upward 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 bullish on TSLA.O and have had this outlook for the last 2 periods.
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