Tesla, Inc. (NASDAQ:TSLA) cuts the price of the Model 3
Tesla cut the price of its most affordable car, the Model 3, by $1,100 making the new starting price $42,900.That’s still a long way from the $35,000 price tag that Tesla CEO Elon Musk promised when the Model 3 was first unveiled in 2016. Still, Musk boasted on Twitter Wednesday that the luxury sedan really does now cost $35,000 after factoring in incentives and all the money drivers will save on fuel.Reminded by a Twitter user about that promised purchase price, Musk replied: “We’re doing everything we can toget there. It’s a super hard grind.”
This is the second time Tesla (TSLA) has cut prices in recent weeks. At the beginning of the year, Tesla announced a price cut of $2,000 on all its models to help offset the partial loss of federal income tax credits for Tesla’s electric vehicles. The tax break started phasing out this year for Teslas after the car maker hit the 200,000 vehicle limit for eligibility late last year. The credit, which phases out in steps, was reduced by half — from $7,500 to $3,750 — beginning January 1. It will drop by half again in July.
Musk has said recently that he expects to be able to produce the Model 3 for $35,000 in the next few months. In the meantime, the company is also coming closer to unveiling its next new product, the Model Y crossover, which will be based on the Model 3’s engineering.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 320.45.
The projected upper bound is: 354.30.
The projected lower bound is: 279.30.
The projected closing price is: 316.80.
A black body occurred (because prices closed lower 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 28 white candles and 22 black candles for a net of 6 white candles.
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 86.3582. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 7 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 49.70. 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 102 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 76. This is not a topping or bottoming area. The last signal was a buy 8 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 3 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -4.130 at 317.220. Volume was 44% below average (neutral) and Bollinger Bands were 8% wider than normal.
Open High Low Close Volume___
319.590 324.240 315.624 317.220 5,038,546
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 306.18 330.91 315.53
Volatility: 28 74 74
Volume: 7,655,160 7,598,379 9,051,227
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 is currently 0.5% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 12 periods.