Tesla, Inc. (NASDAQ:TSLA) Delivery To Miss Q2 Target

Tesla, Inc. (NASDAQ:TSLA) Delivery To Miss Q2 Target

Tesla, Inc. (NASDAQ:TSLA) Delivery To Miss Q2 Target

There’s a pretty good chance Tesla Inc. will deliver at least 90,000 of its electric vehicles (EVs) in the second quarter which, while short of analysts’ expectations, will still be a huge 121 percent year-over-year increase.

Some analysts, however, continue to remain skeptical of Tesla’s promise to deliver 100,000 EVs in Q2 when the company only delivered 63,000 EVs in the first quarter. Tesla also delivered 90,700 vehicles in the fourth quarter of 2018 — its best performance yet.

The large slump in deliveries and production in Q1, plus a drop in demand, led some analysts downgrading Tesla’s stock and predicting the company’s takeover by a tech firm such as Apple or even Amazon. A recovery of sorts by the stock over the past two weeks has muted further criticism of Tesla and caused the stock to recover somewhat.

A number of analysts expect Tesla’s Q2 deliveries to wind-up anywhere from 89,500 and 92,000 units, which they say is astounding given Tesla competes in one of the most capital-intensive industries in the world. This compares with Tesla’s guidance estimating Q2 deliveries ranging from 90,000 and 100,000 EVs.

Deliveries at the low end of Tesla’s guidance (or 90,000 EVs) will still mean a massive 121 percent year-over-year growth. This will also mean a significant jump in deliveries for consecutive quarters and year-on-year. In addition, production of the Tesla Model 3 has continued to rise since the second quarter of 2018.

In an email to Tesla employees on May 22 email, CEO Elon Musk said current delivery trends show the company has “a good chance of exceeding” the record deliveries in Q4 2018.

Musk again told investors during Tesla’s June 11 shareholder meeting the company has “a good shot” at achieving record deliveries during Q2. “If not, it’s going to be very close,” he noted. Tesla’s Q2 numbers will be revealed sometime between July 1 and July 3.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 240.97.

The projected lower bound is: 200.59.

The projected closing price is: 220.78.

Candlesticks

A white body occurred (because prices closed higher 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 22 white candles and 28 black candles for a net of 6 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 49.5972. This is not an overbought or oversold reading. The last signal was a sell 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 54.29. 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 13 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 57. This is not a topping or bottoming area. The last signal was a sell 2 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 12 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 2.240 at 221.860. Volume was 25% below average (neutral) and Bollinger Bands were 17% wider than normal.

Open High Low Close Volume___
216.220 222.180 215.500 221.860 8,202,078

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

Moving Averages: 10-period     50-period     200-period
Close: 218.57 227.35 287.59
Volatility: 48 58 71
Volume: 10,471,105 12,260,842 9,831,284

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 22.9% below its 200-period moving average and is in an upward 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 bullish on TSLA.O and have had this outlook for the last 6 periods.

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