Tesla, Inc. (NASDAQ:TSLA) declined after the departure of a high profile exec, and a disappointing second quarter earnings report

Tesla, Inc. (NASDAQ:TSLA) declined after the departure of a high profile exec, and a disappointing second quarter earnings report

Tesla, Inc. (NASDAQ:TSLA) declined after the departure of a high profile exec, and a disappointing second quarter earnings report

Tesla’s longtime chief technology officer (CTO), who helped create the company, is stepping down after 16 years, CEO Elon Musk told analysts on the earnings call Wednesday. The news followed the disclosure that Tesla reported a larger than expected loss — $408 million — in the second quarter.

“So, important update is JB Straubel, our co-founder and Chief Technology Officer (CTO), will be transitioning to a Senior Advisor from the CTO role and Drew Baglino will be taking over most of JB’s responsibilities. I’d like to thank JB for this fundamental look rolling and creating and — and building Tesla,” Musk said after discussing the company’s financial position. “If we hadn’t had lunch in 2003, Tesla wouldn’t exist, basically.”

Straubel reiterated that he was not fully leaving the company.

“I’m not disappearing. This is not some lack of confidence in the company or the team or anything like that,” Straubel said. “Drew and I worked close together for many, many years, and I have total confidence in Drew and [I’m] not going anywhere, if there’s anything I need to do to be helpful to Drew or the whole team or any of the ongoing projects.”

Straubel’s departure comes amid a tumultuous year for the electric car manufacturer as it struggles bringing its long-promised affordable Model 3 electric car to the mass market.

The outgoing CTO is the latest in a string of high-profile departures, including chief financial officer Deepak Ahuja, vice-president of interior and exterior engineering Steve MacManus, European executive Jan Oehmicke, president of global sales and services Jon McNeill, and Susan Repo, the corporate treasurer and vice president of finance.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 239.04.

The projected upper bound is: 251.86.

The projected lower bound is: 205.64.

The projected closing price is: 228.75.

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 26 white candles and 24 black candles for a net of 2 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 3 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 37.7837. This is not an overbought or oversold reading. The last signal was a sell 3 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 43.55. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 -111.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -36.060 at 228.820. Volume was 109% above average (neutral) and Bollinger Bands were 6% wider than normal.

Open     High      Low     Close     Volume___
233.500 234.500 225.550 228.820 22,418,252
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 252.71 221.43 281.69
Volatility: 94 65 65
Volume: 9,528,770 10,976,667 9,528,356

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 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 18.8% below its 200-period moving average and is in an upward 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 bullish on TSLA.O and have had this outlook for the last 29 periods.

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