Tesla, Inc. (NASDAQ:TSLA) investors are keyed in on slowing demand and diminishing cash on the balance sheet

Tesla, Inc. (NASDAQ:TSLA) investors are keyed in on slowing demand and diminishing cash on the balance sheet

Tesla, Inc. (NASDAQ:TSLA) investors are keyed in on slowing demand and diminishing cash on the balance sheet

Tesla’s electric-vehicle, solar energy and battery-storage businesses tick off big sustainability themes in the era of climate change. That has attracted a passionate base of consumers, as well as social media supporters. Elon Musk has 25 million followers on Twitter.

Tesla also fits the ESG (environmental, social and governance) approach to stock market buying now in favor with a new generation of investors.

“If we’re talking about the ‘E’ here, there is enormous upside potential in cost savings, the prospect of regulatory changes and, most of all, the biggest group of consumers (and ultimately investors) ever — millennials — whose priorities are very ESG-related. All of those things make Tesla (Musk’s issues aside) an appealing prospect,” said one institutional investor.

But that institutional investor no longer owns Tesla. They sold because Musk’s leadership wasn’t delivering on the G — the governance part of the ESG philosophy.

The long-term backers have been rewarded

Despite short-term troubles, Tesla stock has done well since its 2010 IPO. At least to date, the chart has been much better to the early bulls than long-time bears.

The long-term Tesla bulls include a few top-performing managers who are concentrated in their ownership, billionaire mutual fund manager Ron Baron of Baron Capital Management, and Catherine Wood’s at Ark Invest.

Some of their enthusiasm can seem extreme: Last year Wood called for a Tesla stock price of $4,000 by 2023.

But one thing these two managers share is strong performance. Baron is one of the few of the old breed of active mutual fund managers who over the long-term has still managed to perform well versus index funds. Wood’s Ark Innovation ETF (ARKK), meanwhile, has the top ranking in its category over the past three-year period, according to Morningstar.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 286.54.

The projected lower bound is: 239.58.

The projected closing price is: 263.06.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 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 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 51.7407. This is not an overbought or oversold reading. The last signal was a sell 12 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 41.75. 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 154 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 -135.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 1 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 1.150 at 263.900. Volume was 29% above average (neutral) and Bollinger Bands were 45% narrower than normal.

Open High Low Close Volume___
260.150 265.600 255.750 263.900 10,943,859

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

Moving Averages: 10-period 50-period 200-period
Close: 269.54 283.62 309.00
Volatility: 34 52 73
Volume: 8,095,255 9,064,071 9,153,755

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 14.6% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 7 periods.

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