Tesla, Inc. (NASDAQ:TSLA) about $US10 billion of Elon Musk’s fortune is derived from Tesla

Tesla, Inc. (NASDAQ:TSLA) about $US10 billion of Elon Musk’s fortune is derived from Tesla

Tesla, Inc. (NASDAQ:TSLA) about $US10 billion of Elon Musk’s fortune is derived from Tesla

The electric car maker had reported a record decline in deliveries during the first quarter, down to 63,000 vehicles in the three months that ended in March, from 90,966 in the fourth quarter.

About $US10 billion of Mr Musk’s fortune is derived from Tesla, with approximately $US13 billion coming from his stake in closely held rocket business Space Exploration Technologies Corp, according to calculations by the ranking.

The bigger than expected drop in Tesla deliveries spooked stock and bond investors, raising concern about the electric car maker’s ability to make money as Mr Musk headed into another legal tussle with regulators on Thursday.

Four Wall Street brokerages cut their price targets on the stock after deliveries of Tesla’s higher-priced luxury cars – Model S and X – more than halved in the first quarter.

The implications of slowing deliveries on cash flow for a company saddled with billions of dollars in debt rattled bond investors, pushing the price of its $US1.8 billion junk bond down by the most in seven months.

RBC analysts called Model S/X deliveries “very disappointing” and estimated the numbers would translate to a more than $US1 billion shortfall in revenue compared to previous estimates.

The company had flagged in February that it expected to post a first-quarter loss as it launched its cheaper $US35,000 version of the Model 3 sedan.

Mr Musk, who is under pressure to deliver Model 3 to new international markets efficiently, has been engaged in a public disagreement with US regulators stemming from his tweets about Tesla’s production estimates.

The company said it had delivered only half of the quarter’s numbers by March 21, with 10,600 vehicles still in transit at the end of the quarter. By comparison, only 1900 vehicles were in transit at the end of the fourth quarter.

Cowen and Co analysts said that the delivery and transit details suggested “cash was likely dangerously low” after Tesla paid off a $US920 million convertible bond obligation in cash in the beginning of March.

The carmaker reaffirmed its forecast to deliver 360,000 to 400,000 vehicles this year, and said US orders for the new Model 3 outpaced what the company was able to fulfil in the quarter.

Nord LB analyst Frank Schwope called the numbers “more shocking than disappointing” and said there remained doubts whether Tesla could deliver 400,000 cars this year.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 291.32.

The projected lower bound is: 243.45.

The projected closing price is: 267.38.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 5 falling windows in the last 50 candles–this makes the current falling window even more bearish.

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 53.7489. This is not an overbought or oversold reading. The last signal was a sell 0 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 41.82. 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 142 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 -71. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 5 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -24.030 at 267.780. Volume was 188% above average (trending) and Bollinger Bands were 33% narrower than normal.

Open High Low Close Volume___
261.890 271.200 260.590 267.780 23,720,728

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 276.07 292.25 313.10
Volatility: 66 52 74
Volume: 9,309,616 8,754,375 9,259,276

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 gapped down today (bearish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TESLA INC is currently 14.5% below 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 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 0 periods.

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