Tesla, Inc. (NASDAQ:TSLA) bids to become an energy provider in the United Kingdom

Tesla, Inc. (NASDAQ:TSLA) bids to become an energy provider in the United Kingdom

Tesla, Inc. (NASDAQ:TSLA) bids to become an energy provider in the United Kingdom

California-based car manufacturer Tesla is taking initial steps to become an energy provider in the United Kingdom, The Telegraph reports. The publication notes that Elon Musk’s electric car company has applied to UK’s energy regulator for a license to generate electricity.

“Having built a significant battery business in recent years, industry sources say that Tesla is now preparing to enter the British market with its technology,” writes The Telegraph. The report also notes that Tesla may be attempting to introduce its Autobidder platform, a real-time energy trading and control platform that’s currently utilized at Tesla’s Hornsdale Power Reserve in Australia.

Tesla most recently built the world’s largest lithium-ion battery in 2017, which currently produces 100 MW of electricity in South Australia. The project helps in providing stability to the power grid in order to prevent rolling blackouts, with a portion of the electricity stored and sold when demand is high.

Shares of Tesla tumbled 9% on Friday after CEO Elon Musk tweeted that the electric carmaker’s high-flying stock was overly expensive. “Tesla stock price is too high,” Musk said on Twitter in one of several unusual messages, including ones quoting parts of the U.S. national anthem and saying that he would sell almost all his physical possessions.

The subsequent share drop erased around $13 billion from Tesla’s market value and nearly $3 billion from the value of Musk’s stake. Still, shares remain up almost 50% from the start of April.

Shayne Heffernan Trade Idea

“Musk has recently expressed some strong and, at times, controversial, views on COVID-19 and some elements of the response to the crisis and we believe is attempting to use his broad following and visibility to bring attention to some economic factors that he believes may be overlooked.”  Shayne Heffernan PhD in Economics

Why This Matters

Tesla’s stock has surged in recent weeks but is down since Wednesday after the company reported an unexpected quarterly profit, despite manufacturing interruptions caused by the coronavirus pandemic. Musk’s latest tweets follow others this week. On Tesla’s quarterly conference call on Wednesday, he called sweeping U.S. stay-at-home restrictions to curtail the coronavirus outbreak “fascist.” Those restrictions have forced Tesla to shutter its car plant in Fremont, California.

Musk’s iconoclastic stance has helped him attract over 33 million followers on Twitter and is seen as a marketing boon for Tesla. Tesla’s recent rally has put Musk on the verge of a payday of over $700 million. The six-month average of Tesla’s market capitalization is just short of $100 billion, a target that would trigger the vesting of a tranche of options granted to Musk to buy 1.69 million shares as part of his two-year-old pay package.

Tesla Motors has already revolutionized the way we power cars by eliminating total dependence on fossil fuels. Now, the company is revolutionizing how we power our homes with home battery technology that’s been out for over a year now.

The Move Towards Sustainable Energy

So your service business has already traded in pen and paper for a software system that manages your business in a mobile capacity. You’re already on board and see the value that change in this new direction can bring.

Whether you buy into Global Warming or not, CO2 levels in our atmosphere are increasing. The power plants burning fossil fuels that currently supply energy to the vast majority of the modern world are extremely inefficient. The amount of waste these fuels release far outweighs the amount of power they produce. And current home battery technologies are unreliable, inefficient, not scalable, and expensive to install and maintain.

With more of a push to deliver clean energy to the world, this may impact your day-to-day life in the near future. Here’s a quick outline of some of Tesla’s latest advances and what you need to know about what lies ahead…

The world is moving toward sustainable energy

Tesla’s Home Battery

At Tesla’s Powerwall launch event, Elon Musk, the CEO of Tesla Motors, said in his opening statement that there’s going to be a “fundamental transformation in how the world works and how energy is delivered across the earth.” The system we use to collect and distribute energy is broken, and Tesla’s goal is for us is to, collectively, do something about it and create positive change.

Tesla’s Powerwall home battery gives everyone peace of mind in more ways than one. You will always have power, even when off the grid (when the power goes out after an extreme weather event, such as a hurricane or blizzard, for example). The Powerwall provides safety and security, all in a complete and affordable solution available for just $3,500,while many solar panel/home battery systems currently on the market cost well over $10,000.

Musk goes on to explain how “people in a remote village or on an island somewhere can take solar panels, combine it with the Tesla Powerwall and never have to worry about having electricity lines. Having a solution that works wherever you are will be incredibly powerful to people who don’t have electricity today.”

Tesla's home battery

The Powerwall is easy on the eyes and designed so you can stack up to 9 of them on a wall, taking up the same amount of space as an average sized painting. Its lithium ion battery uses the company’s proven automotive battery technology to bring a completely automated, easy to install, power solution to a home. By storing electricity generated by solar panels, the Powerwall feeds electricity to your entire home or selected appliances in the evening and night hours. Better yet, it requires no maintenance.

Tesla’s Commercial Battery

The Powerpack

Going beyond the Powerwall, Tesla also offers the Powerpack which can power commercial operations. Their end goal is to transition the world to sustainable energy in the near future. It would take an estimated 2 billion of these Powerpacks to transition all transport, electricity and heating to renewable energy. And although that number seems like a lot, in comparison, there are already 2 billion cars and trucks on the roads with 100 million new cars and trucks being added every year. It would only take 900 million Powerpacks to transition the world to renewable energy and 160 million to transition the United States.

Financial Factsheet

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 833.13.

The projected lower bound is: 561.58.

The projected closing price is: 697.36.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black 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 43.9150. This is not an overbought or oversold reading. The last signal was a sell 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 52.51. 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 30 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 -59. 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 25 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -80.560 at 701.320. Volume was 99% below average (consolidating) and Bollinger Bands were 17% wider than normal.

Open       High       Low        Close        Volume
755.000    772.770    683.040    701.320      165,687
Technical Outlook
Short Term:            Neutral
Intermediate Term:     Bullish
Long Term:             Bullish
Moving Averages: 10-period        50-period        200-period
Close:           744.76           631.95           430.90
Volatility:      117              148              100
Volume:          15,641,174       18,252,254       13,247,183

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 62.8% above 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 moderate flows of volume into TSLA.O (mildly bullish). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 13 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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