Tesla, Inc. (NASDAQ:TSLA) Is Betting Big on the Electric Car Revolution

Tesla, Inc. (NASDAQ:TSLA) Is Betting Big on the Electric Car Revolution

Tesla, Inc. (NASDAQ:TSLA) Is Betting Big on the Electric Car Revolution

With the electric vehicle (EV) revolution gaining traction as more and more auto giants are stepping into the EV market space, Tesla’s (NASDAQ:TSLA) Model 3 is emerging as one of the best-selling EVs, especially in European markets.

There has been a sweeping shift in the vehicle industry from internal combustion engines to electric-powered versions. A host of factors such as pollution issues, government subsidies, cost advantages, stricter fuel emission standards, technical superiority, and increasing adoption from both automakers and customers have made EVs popular.

Although electric cars make up a small portion of the global automobile market, TSLA has acquired a substantial market share of this niche segment. With its popular Model 3 sedan, Tesla has established itself as a leader in the EV segment.

Notably, global electric car sales dropped for the first time on record in July after China dialed back its EV subsidies. But  North American EV sales also took a hit. While sales of the Model 3 have not been too robust in the United States and China, TSLA is certainly gaining momentum in Europe.

Since the launch of the Model 3 in Europe early this year, rising deliveries have been boosting Tesla’s sales on the continent. The Model 3 is in a class of its own, with superior features, advanced technologies, and speed and safety advantages compared with other brands, making it a highly popular vehicle in several markets.

Model 3’s Popularity Skyrockets in Europe

Tesla’s Model 3 has become a hot-selling car in Netherlands, with its 2018 sales crossing 10,000 units. Undeniably, this figure is massive, and it seems to be an impressive feat for a model whose deliveries began in February 2019. Not many vehicles generate that many sales in Holland even in a year. Reportedly, the Model 3 was the third best-selling vehicle in the country in the January-August period, just behind Volkswagen’s (OTC:VLKAF) Polo and Ford’s (NYSE:F) Focus. Nevertheless, after  deliveries of the Model 3 jumped in September, it is currently the most popular vehicle in the country this year. Markedly, the Dutch have bought the most EV vehicles in the European market, only outperformed by Norway.

In the Norwegian market, Tesla’s Model 3 is the hottest-selling car by a large margin. With around 12,000 units sold in Norway so far this year, sales of the Model 3 have been more than double that of the Volkswagen Golf, which is in the second spot.

Notably, Netherlands and Norway have always been big markets for TSLA, even before the Model 3 hit the roads. But after the launch of the Model 3, Norway and Netherlands are the runaway leaders of the EV game in Europe. With the two countries leading the wave toward cleaner energy and greener roads, other European nations are following suit.

Other European countries like Austria, Belgium, Spain and Italy are also buying more cars from TSLA. While these countries have sold only a few hundred Tesla Model X and Model S cars per year over the past few years, following the advent of the Model 3, TSLA has benefited from a significant surge in deliveries in those nations. That underscores not just the growing electric revolution, especially in Europe, but it also reflects the immense popularity of TSLA cars, particularly the Model 3.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 251.07.

The projected lower bound is: 205.38.

The projected closing price is: 228.23.

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 25 white candles and 25 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 21.5052. This is not an overbought or oversold reading. The last signal was a buy 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 45.86. 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 43 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 -132.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 7 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 5.490 at 228.700. Volume was 7% above average (neutral) and Bollinger Bands were 18% narrower than normal.

Open     High      Low     Close     Volume___
224.560 228.980 218.360 228.700 9,444,286
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 240.25 233.91 262.40
Volatility: 51 61 61
Volume: 6,496,389 6,900,902 8,987,755

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 12.8% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 11 periods.

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