Tesla, Inc. (NASDAQ:TSLA) facing a criminal inquiry over CEO Elon Musk’s go-private tweets

Tesla, Inc. (NASDAQ:TSLA) facing a criminal inquiry over CEO Elon Musk’s go-private tweets

Tesla, Inc. (NASDAQ:TSLA) facing a criminal inquiry over CEO Elon Musk’s go-private tweets

Tesla is now facing a criminal inquiry over CEO Elon Musk’s go-private tweets, Bloomberg News reported Tuesday.
After initially declining to comment, a Tesla spokesperson said the inquiry was voluntary request and not a formal subpoena.

Shares of the electric-car company sharply fell as much as 6% following the report, but are now down less than 3%.
Follow Tesla’s stock price in real-time here.

Tesla shares fell as much as 6% Tuesday after Bloomberg News reported the company was under investigation by the US Department of Justice over CEO Elon Musk’s public statements, citing two sources familiar with the matter. Tesla has denied the report was a formal subpeona, saying it was a voluntary request, and shares now down less than 3%.

The criminal probe comes one month after federal prosecutors also opened a fraud investigation relating to the Musk’s claims that funding had been secured to take Tesla private at $420 per share. Musk later explained in a blog post that the tweet came after a meeting with Saudi Arabian investors who left him feeling that “no other decision makers were needed and that they were eager to proceed.”

The new criminal inquiry is in the early stages, Bloomberg said, adding that enforcement actions can take months to materialize. The US attorney’s office in the Northern District of California did not immediately respond to requests for comment.

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 309.39.

The projected upper bound is: 321.63.

The projected lower bound is: 246.95.

The projected closing price is: 284.29.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 27 white candles and 23 black candles for a net of 4 white candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with TESLA INC), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 68.0196. This is not an overbought or oversold reading. The last signal was a sell 0 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 41.72. 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 6 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 -7. This is not a topping or bottoming area. The last signal was a buy 6 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 2 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -9.880 at 284.960. Volume was 100% below average (consolidating) and Bollinger Bands were 8% narrower than normal.

Open High Low Close Volume___
296.690 302.640 275.500 284.960 3,494

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

Moving Averages: 10-period 50-period 200-period
Close: 284.49 314.41 316.98
Volatility: 74 74 60
Volume: 9,115,948 9,684,927 8,045,954

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 10.1% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 14 periods.

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