Tesla, Inc. (NASDAQ:TSLA) falls after Consumer Reports said it was pulling its recommendation of the company’s Model 3 due to declining reliability

Tesla, Inc. (NASDAQ:TSLA) falls after Consumer Reports said it was pulling its recommendation of the company’s Model 3 due to declining reliability

Tesla, Inc. (NASDAQ:TSLA) falls after Consumer Reports said it was pulling its recommendation of the company’s Model 3 due to declining reliability

Tesla’s stock sank nearly 4 percent on Thursday after Consumer Reports said it was pulling its recommendation of the company’s Model 3 due to declining reliability.

The consumer watchdog organization, which just released its 10 best cars, SUVs and pickups, said it can no longer recommend the Tesla Model 3 electric sedan after noticing substantive manufacturing defects, including “loose body trim” and “glass defects,” such as windows cracking too easily.

Tesla CEO Elon Musk has argued that the company is repeatedly improving the Model 3 through manufacturing changes and software upgrades. But the company’s aggressive move to accelerate the pace of production in 2018 may have caused some issues, according to Jake Fisher, senior director of auto testing for Consumer Reports.

Yet “people who have told us they have problems with the car have also told us they’re very satisfied with the car,” Fisher said.

Tesla said in a statement that its cars are “the safest and best performing vehicles available today.”

“We’re setting an extremely high bar for Model 3. We have already made significant improvements to correct any issues that Model 3 customers may have experienced that are referenced in this report, and our return policy allows any customer who is unhappy with their car to return it for a full refund,” the company said.

Tesla’s stock fell 3.7 percent to $291.23, the lowest close since Jan. 23, according to Bloomberg. 

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 326.04.

The projected lower bound is: 253.75.

The projected closing price is: 289.90.

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 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is 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 17.1783. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 9 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 37.57. 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 112 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 -193.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 18 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 -11.330 at 291.230. Volume was 11% above average (neutral) and Bollinger Bands were 58% narrower than normal.

Open High Low Close Volume___
301.810 303.240 290.500 291.230 8,909,182

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

Moving Averages: 10-period 50-period 200-period
Close: 305.72 322.16 316.32
Volatility: 33 72 74
Volume: 5,947,925 7,437,716 9,013,330

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 7.9% below 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 1 periods.

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