Tesla, Inc. (NASDAQ:TSLA) Has Too Many Variables
Tesla’s recent production goal success feels a little too late considering the mounting competition.
With a weak financial position relative to many rivals, I fear that Tesla doesn’t have what’s needed to really compete.
Because of this, I see the need for capital raises/stock dilution in order to keep cranking production up.
For those that see the appeal in Tesla (TSLA) (I am not one of them), the big thing that Elon Musk sold was being first. Tesla Motors was doing things that others weren’t. He ran the stock to astronomical heights off of the premise that Tesla’s electric cars were going to be better than anything else on the road, and no one could match them. He was changing the world. He was going to be that entrepreneur that cashed in on something new before any other carmakers could catch up. Well, the ship has sailed on that one.
Monday’s news that Tesla finally hit its production goals for the Model 3 probably brought great relief to many shareholders. The EV for the masses has had so many production delays that one wonders if the original schedule was ever feasible to begin with. Indeed, Elon Musk makes a lot of promises but very rarely delivers on time. Anyway, the company produced 5,000 of them in the last week of June. It’s a moral victory for Musk and his cohort, but I can’t help feel that the company has missed its chance at snatching market share.
Anyone who brushes off the prospect of competition for Tesla is just being naïve. The major established automakers will never quietly allow Tesla to steal their business. Two years ago, Tesla had an opportunity as there weren’t many comparable models from competitors. Today, there are several.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 347.56.
The projected lower bound is: 291.37.
The projected closing price is: 319.46.
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.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 52.3014. This is not an overbought or oversold reading. The last signal was a buy 2 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 46.92. 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 15 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 -59. This is not a topping or bottoming area. The last signal was a buy 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 11 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -3.510 at 318.960. Volume was 100% below average (consolidating) and Bollinger Bands were 15% wider than normal.
Open High Low Close Volume___
315.800 321.940 315.070 318.960 1,184
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 326.13 312.97 320.62
Volatility: 53 56 51
Volume: 9,767,779 8,869,132 7,187,579
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.
TESLA INC is currently 0.5% below its 200-period moving average and is in an downward 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 bearish on TSLA.O and have had this outlook for the last 1 periods.
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