Tesla, Inc. (NASDAQ:TSLA) has got something no one else in the auto world has

Tesla, Inc. (NASDAQ:TSLA) has got something no one else in the auto world has

Tesla, Inc. (NASDAQ:TSLA) has got something no one else in the auto world has

Tesla (NASDAQ:TSLA) stock is down 30% in 2019.  However, in 2018, TSLA stock rose 6.9%, which was better than most of the other major auto stocks. 

Yet TSLA continues to face an ongoing battle for survival. 

It seems not a day goes by when someone doesn’t question whether Elon Musk and Tesla will become one of the great automotive companies of the 21st century or just another footnote in history. 

I believe will TSLA will become great, and I will show why owning TSLA stock isn’t nearly as risky as owning other automakers, such as BMW (OTCMKTS:BMWYY) . 

What’s the Risk Posed by Tesla Stock?

Elon Musk is doing everything possible to boost its sales, including providing free supercharging for life on Tesla’s two older models.

In Q2, Tesla lost $408.3 million, and its loss per share, excluding certain items, came in at $1.12, way above the consensus outlook of a 40 cent per share loss. .

However, on a positive note, its Q2 loss was 43% lower than its loss in the same period a year earlier. And on a non-GAAP basis, it only lost $198.5 million , 62% less than during the same period in Q2. 

Moreover, the popularity of Tesla’s  Model 3 continues to pave the way for a much better future for the company than for its competitors. 

Here’s why.

Hybrid Is a Losing Bet

BMW CEO Harold Krueger stepped down in early July after four years in the job. While he will stay on until a successor is found, the general consensus is that Krueger failed to recognize the speed at which electric vehicles were becoming the norm around the world. 

BMW had the i3, an all-electric vehicle, as early as 2013. It could have taken that bold creation and driven the rest of its German competition into the ground. Instead, it chose to focus on plug-in hybrids, not wanting to fully commit to the world of electric vehicles. 

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 257.92.

The projected lower bound is: 214.33.

The projected closing price is: 236.12.

Candlesticks

A white body occurred (because prices closed higher 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 27 white candles and 23 black candles for a net of 4 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with TESLA INC). It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) 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 51.5914. This is not an overbought or oversold reading. The last signal was a buy 10 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 49.20. 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 sell 13 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 -8. This is not a topping or bottoming area. The last signal was a buy 11 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 13 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 5.990 at 235.000. Volume was 53% below average (consolidating) and Bollinger Bands were 8% narrower than normal.

Open     High      Low     Close     Volume___
228.810 236.000 227.550 235.000 4,868,998
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 233.96 230.52 279.63
Volatility: 38 60 62
Volume: 5,964,872 9,034,961 9,275,737

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 16.0% below its 200-period moving average and is in an downward 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 bearish on TSLA.O and have had this outlook for the last 10 periods.

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