Tesla, Inc. (NASDAQ:TSLA) Financial Officer Deepak Ahuja is prompting questions about the company’s sustainability

Tesla, Inc. (NASDAQ:TSLA) Financial Officer Deepak Ahuja is prompting questions about the company’s sustainability

Tesla, Inc. (NASDAQ:TSLA) Financial Officer Deepak Ahuja is prompting questions about the company’s sustainability

The retirement of Tesla Inc. Chief Financial Officer Deepak Ahuja is prompting questions about the company’s sustainability among financial investors who are jittery about the Silicon Valley company’s high turnover rate among top ranking executives. 

Between September 2009 and June 2018, Tesla lost 69 executives, according to a list compiled by investor Jim Chanos, a prominent short seller of Tesla’s stock. Chanos’ list includes Ahuja, 56, who left Tesla in 2015 and returned in 2017.

Even CEO Elon Musk was forced by the U.S. Securities and Exchange Commission to step down as chairman of Tesla’s board of directors for at least three years after sending controversial tweets about taking the company private. He was allowed to remain in the CEO position. 

Ahuja’s departure, announced as Tesla confirmed losing nearly $1 billion last year, caused analysts and stock market observers to again question Musk’s promises about moving Tesla closer to consistent profitability. 

David Kudla, CEO of Grand Blanc-based Mainstay Capital Management LLC, said investors have gotten used to constant churn in Tesla’s executive ranks. But he said the departure of high-ranking financial officers like Ahuja usually raise eyeballs on Wall Street.  

“I don’t think anybody is surprised by the next executive departure at Tesla,” Kudla said. “There’s a little bit of a heightened awareness when it’s somebody from engineering or finance. … When it’s somebody from finance, the question is what might they doing with the books at Tesla.” 

Kudla noted that unlike Ahuja, who is retiring, several other Tesla executives have departed the Silicon Valley automaker recently or have gone to other companies that are seen as being on the cutting edge of technology like Uber Technologies Inc. 

“If someone in that position again and again and again looks around and says ‘it’s time to go,’ what does that say about the future of the company,” he said. 

After posting two consecutive profitable quarters to close 2018, Tesla cut its losses from $1.9 billion in 2017 to $976 million. Musk has said he expects Tesla to be profitable in each quarter of this year, but the company will have to do so without its CFO, who was in his second stint as Tesla’s top financial officer. 

Tesla stock fell from a close of $308.77 on Jan. 30 to an open of $301 following the announcement of Tesla’s fourth quarter 2018 performance and Ahuja’s departure.  

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 320.21.

The projected upper bound is: 344.50.

The projected lower bound is: 269.78.

The projected closing price is: 307.14.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 4 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 69.3485. 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 45.18. 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 103 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 40. This is not a topping or bottoming area. The last signal was a buy 9 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 4 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -9.710 at 307.510. Volume was 27% below average (neutral) and Bollinger Bands were 5% wider than normal.

Open High Low Close Volume___
313.300 314.700 303.000 307.510 6,520,611

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

Moving Averages: 10-period 50-period 200-period
Close: 307.79 330.54 315.66
Volatility: 36 74 74
Volume: 7,506,006 7,644,739 9,059,363

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 2.6% below its 200-period moving average and is in an upward trend. Volatility is low 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 bullish on TSLA.O and have had this outlook for the last 0 periods.

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