Tesla, Inc. (NASDAQ:TSLA) expected to be profitable again in Q4

Tesla, Inc. (NASDAQ:TSLA) expected to be profitable again in Q4

Tesla, Inc. (NASDAQ:TSLA) expected to be profitable again in Q4

The first big move for Tesla last month came on Monday, Oct. 1, after Musk settled with the SEC over allegations that he had misled investors with tweets about the automaker’s potential privatization . Adding even more fuel to the stock’s move on Oct. 1, Musk sent an email to employees over the weekend leading up to Monday, saying Tesla was “very close to achieving profitability.”

Later in the month, shares also benefited from Tesla’s earnings release, which featured non-GAAP earnings per share that were much higher than expected. Non-GAAP EPS for the period was $2.90, up from a loss per share of $3.06 in the year-ago quarter and obliterating a consensus analyst forecast for $0.17. Tesla also notably achieved positive free cash flow of $881 million during the period.

Now what

For its fourth quarter, Tesla maintained its guidance for 100,000 combined Model S and X deliveries in 2018. In addition, Tesla said it expected Model 3 deliveries during Q4 to be slightly higher than the 56,065 it delivered to customers in Q3.

Management also said it expected to be profitable again in Q4.

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 316.53.

The projected upper bound is: 386.57.

The projected lower bound is: 303.96.

The projected closing price is: 345.27.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 28.1373. This is not an overbought or oversold reading. The last signal was a sell 6 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 61.16. 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 47 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 29. This is not a topping or bottoming area. The last signal was a sell 8 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 1 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 5.270 at 344.000. Volume was 51% below average (consolidating) and Bollinger Bands were 48% wider than normal.

Open High Low Close Volume___
342.700 347.110 337.150 344.000 5,040,287

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

Moving Averages: 10-period 50-period 200-period
Close: 343.72 298.70 311.00
Volatility: 43 92 72
Volume: 6,739,649 10,675,228 9,126,786

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 10.6% 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 15 periods.

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