Tesla, Inc. (NASDAQ:TSLA) at a cost advantage over traditional automakers

Tesla, Inc. (NASDAQ:TSLA) at a cost advantage over traditional automakers

Tesla, Inc. (NASDAQ:TSLA) at a cost advantage over traditional automakers

Tesla won’t have a presence at this year’s Detroit Auto Show but the electric-car maker is miles ahead of the competition in three key categories, ARK Invest founder and CEO Catherine Wood told CNBC on Monday.

Traditional automakers have been making sizable investments into electrifying their vehicles, but Tesla is leading the industry in battery technology, artificial intelligence and data collection, she argued.

“We believe that [the] transportation industry is going to shift wholesale to electric, and Tesla is ahead of the pack,” Wood said on “Fast Money.”

It will be hard for other producers to catch up, because it is in Tesla’s “DNA,” she added.

Wood, whose tech-heavy fund finished 2018 in the green and is continuing the upward trend thus far in 2019, thinks Tesla is at a cost advantage because it produces its own batteries for the Model S, Model X and Model 3 vehicles. Other car companies need to vertically integrate, she said.

Also, the type of battery that Tesla uses gives it an additional edge over other carmakers. Tesla’s vehicles operate with a lithium-ion cylindrical battery like those used in consumer electronics instead of the lithium-ion pouch batteries.

Tesla, Wood said, has also collected billions of miles of data from its own customers and continues to gather more than a billion miles each quarter. Google parent Alphabet’s Waymo comes in second, with about 200 million miles worth of data, she added.

“That’s what powers an autonomous vehicle, and that’s where we’re going,” Wood said.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 367.56.

The projected lower bound is: 301.42.

The projected closing price is: 334.49.

Candlesticks

A black body occurred (because prices closed lower 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 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 83.5496. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 8 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 50.09. 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 86 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 64. 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 4 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -12.860 at 334.400. Volume was 42% below average (neutral) and Bollinger Bands were 11% narrower than normal.

Open High Low Close Volume___
342.380 342.500 334.000 334.400 5,247,284

Technical Outlook
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 329.64 341.47 313.74
Volatility: 71 64 74
Volume: 6,865,567 6,988,959 9,242,481

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 6.6% above its 200-period moving average and is in an downward trend. Volatility is high 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 18 periods.

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