Tesla, Inc. (NASDAQ:TSLA) latest quarterly report includes a record number of vehicle deliveries at 95,200

Tesla, Inc. (NASDAQ:TSLA) latest quarterly report includes a record number of vehicle deliveries at 95,200

Tesla, Inc. (NASDAQ:TSLA) latest quarterly report includes a record number of vehicle deliveries at 95,200

Tesla has had its share of ups and downs over the years with exploding cars, autopilot mishaps, and CEO Elon Musk saying and doing foolish things on the internet. But this week was a big “up” for the electric car maker. Tesla’s latest quarterly report includes a record number of vehicle deliveries at 95,200. 

Tesla’s stock rose as expected following the news, gaining 7 percent after falling 35 percent since early 2019 when it reported slower than expected sales. Tesla has benefited from a full quarter selling the Model 3, its most affordable vehicle, in Europe and China. The Model 3 previously launched for US buyers in 2018, after taking reservations for years. 

The Model 3 makes up the vast majority of Tesla’s record-breaking sales at 77,550. That’s a 50 percent increase over the first quarter of the year. Sales of the more profitable Model S and Model X increased as well from 12,100 to 17,650. However, that number is lower than the 27,550 S and X vehicles delivered in the last quarter of 2018. That suggests the Model 3 is pulling some buyers away from the more profitable cars. Still, the increased sales are making up for it. 

Tesla also says that its production capacity has increased by 13 percent in the second quarter of 2019. Only 7,400 cars were still listed as in transit to buyers, down from 10,600 at the end of the first quarter. 

The increased sales may be harder to sustain going forward. Tesla has cut prices several times in pursuit of its goal of selling 400,000 cars this year. The automaker is also facing the end of government tax breaks for selling electric vehicles. The $7,500 tax credit fell to $3,750 early this year, and now it’s down to $1,875. It will go away completely at the end of this year.  The company is also still operating at a loss. 

One bright spot on the horizon may be Tesla’s upcoming launch of the Model Y. This vehicle splits the difference between the Model 3 and the high-end Model X. It’s a smaller crossover/hatchback offering more space than a Model 3 and a lower price than the Model X. The Model Y will launch in late 2020 for US customers.

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 252.56.

The projected lower bound is: 212.62.

The projected closing price is: 232.59.

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 21 white candles and 29 black candles for a net of 8 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 60.9982. This is not an overbought or oversold reading. The last signal was a sell 16 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 60.95. 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 22 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 142.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 21 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -1.800 at 233.100. Volume was 37% below average (neutral) and Bollinger Bands were 44% narrower than normal.

Open High Low Close Volume___
234.570 235.450 230.800 233.100 7,065,738

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

Moving Averages: 10-period     50-period     200-period
Close: 225.05 219.81 284.93
Volatility: 32 58 69
Volume: 8,059,710 12,134,450 9,737,479

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 18.2% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 15 periods.

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