Tesla, Inc. (NASDAQ:TSLA) generated a GAAP profit of $1.75 per diluted share

Tesla, Inc. (NASDAQ:TSLA) generated a GAAP profit of $1.75 per diluted share

Tesla, Inc. (NASDAQ:TSLA) generated a GAAP profit of $1.75 per diluted share

With numbers like these coming, you have to wonder why Elon Musk was so vexed by the short sellers. Because, in the same quarter Tesla Inc.’s CEO indulged in that weird $420 takeover episode, the electric car company actually generated very good results.

As promised, Tesla generated a GAAP profit of $1.75 per diluted share. It also turned in positive cash from operations of almost $1.4 billion, and generated free cash flow for the first time in eight quarters, to the tune of $881 million. Working capital changes helped that some, and capital expenditure came in a bit light. But it is still an impressive number. This enabled Tesla to end September with just shy of $3 billion in the bank, reversing the steady increase in net debt:

Positive free cash flow reversed a steady increase in Tesla’s net debt.

Higher margins on the Model 3 provided a significant boost. Even adjusting for the sale of zero-emission vehicle credits – an irregular top-up to Tesla’s earnings over the years – the automotive gross margin came in above 25 percent. It remains to be seen whether Tesla also sold other regulatory credits; it only discloses those in its 10-Q filing, and they have moved the needle substantially at various points in the past. Still, on the face of it, I estimate it made almost $5,500 of pre-tax profit on each vehicle. In particular, research and development and selling, general and administrative costs were noticeably held down even as revenue jumped.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 296.95.

The projected upper bound is: 328.41.

The projected lower bound is: 246.22.

The projected closing price is: 287.32.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 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 67.4156. This is not an overbought or oversold reading. The last signal was a buy 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 53.60. 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 32 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 209.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 5 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -5.640 at 288.500. Volume was 100% below average (consolidating) and Bollinger Bands were 4% narrower than normal.

Open High Low Close Volume___
301.050 304.440 285.730 288.500 18,739

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

Moving Averages: 10-period 50-period 200-period
Close: 268.65 290.71 311.43
Volatility: 85 92 71
Volume: 7,919,454 10,061,104 8,711,360

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 7.4% below its 200-period moving average and is in an upward trend. Volatility is high 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.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH