Tesla, Inc. (NASDAQ:TSLA) lowering the price of its two most expensive models by $2,000 to $3,000, not including tax credits
Tesla has sliced the price of its two most expensive models after several Wall Street analysts questioned the demand for its cars. The company on Monday cut $3,000 from the price of the Model S sedan and $2,000 from the Model X SUV.
The Model S now starts at $71,250 while the X starts at $71,950. The prices don’t include federal and state tax credits for electric-vehicle purchases.
Tesla wouldn’t say if slowing sales influenced its decision, but it said it periodically adjusts prices and available options, according to the Associated Press. Tesla said the decreases offset price increases from a month ago when it offered longer battery range and added a new drive system and suspension.
The moves come as Tesla’s stock is under pressure, at times dropping below $200 per share this week. Several analysts have questioned whether the company can sell enough cars to cover its expenses without dipping into its shrinking cash reserves.
Shares traded Tuesday afternoon at $205.62, up slightly from Monday’s closing price. They are down more than 38 percent so far this year, cutting the company’s market value more than $20 billion to $36.5 billion. On Monday the shares hit their lowest point since late 2016.
Tesla said in a statement that the reductions are about 2% to 3% on the prices of the S and X. The company last week raised the price of its top-selling Model 3 by $400, pushing the base price to $35,400. “By any reasonable standard, these small changes are not newsworthy,” the company said in a statement.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 263.75.
The projected upper bound is: 225.33.
The projected lower bound is: 181.40.
The projected closing price is: 203.36.
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 24 white candles and 26 black candles for a net of 2 black 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 21.6134. 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 26.01. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 16 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 -150.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 13 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 6 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -0.280 at 205.080. Volume was 84% above average (neutral) and Bollinger Bands were 14% wider than normal.
Open High Low Close Volume___
197.760 207.400 196.040 205.080 18,003,900
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 226.74 259.02 301.39
Volatility: 52 54 72
Volume: 10,907,938 10,648,080 9,686,500
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 32.0% below its 200-period moving average and is in an downward trend. Volatility is 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 27 periods. Our momentum oscillator is currently indicating that TSLA.O is currently in an oversold condition.