Tesla, Inc. (NASDAQ:TSLA) market value zooms past that of GM and Ford – combined

Tesla, Inc. (NASDAQ:TSLA) market value zooms past that of GM and Ford – combined

Tesla, Inc. (NASDAQ:TSLA) market value zooms past that of GM and Ford – combined

For the first time, Tesla Inc’s <TSLA.O> stock market value has eclipsed the combined values of General Motors Co <GM.N> and Ford Motor Co <F.N>.

The Silicon Valley electric car maker’s stock jumped nearly 5% on Wednesday, closing at a record $492.14 per share and elevating its market capitalization to almost $89 billion, or $2 billion larger than the sum of General Motors’ and Ford’s respective market caps of $50 billion and $37 billion.

Fueled by a surprise third-quarter profit, progress at a new factory in China and better-than-expected car deliveries in the fourth quarter, Tesla’s stock has more than doubled in the past three months.

“It’s clear that Tesla is back to being a story stock and there’s a lot of good news out there,” said David Kudla, chief investment strategist at MainStay Capital Management. “But there are still some problematic issues out there, chief among them is what will its sustained profitability look like, and when will it start to be valued like a car company and not a tech company.”

The progress made by Tesla Chief Executive Elon Musk has defied short sellers and other traders expecting the automaker to be overtaken by long-established car companies, including GM and Ford.

Underscoring investors’ confidence in Musk and his company’s future growth, its market capitalization has outpaced its U.S. rivals, even as their businesses dwarf Tesla’s. GM and Ford each delivered more than 2 million vehicles in the United States last year, compared with Tesla’s worldwide deliveries of 367,500 vehicles.

The company has repeatedly missed targets in recent years and Musk’s mercurial behavior has come under close scrutiny from financial regulators and shareholders of Tesla.

However, most mainstream automakers are still ramping up new generations of electric vehicles designed to compete with Tesla’s combination of style, technology and performance.

German automakers Volkswagen AG <VOWG_p.DE>, Daimler AG <DAIGn.DE> and BMW AG all have promised to launch fully electric premium models. GM’s Cadillac luxury brand is gearing up to launch a series of electric SUVs and cars, while Ford’s Mustang Mach-E electric SUV, unveiled in November, will launch later this year and could compete with Tesla’s Model X or soon-to-launch Model Y SUVs. Ford, GM and other manufacturers have electric pickups in the works to take on Musk’s futuristic Cybertruck.

Rival electric vehicle models from Audi, Jaguar and Porsche have fallen short of Tesla’s driving range between charges and failed to match Tesla’s brand cachet.

More analysts rate Tesla “sell” than “buy,” which is extremely unusual for companies on Wall Street. Eleven analysts recommend buying Tesla shares, while 13 recommend selling and another nine are neutral, according to Refinitiv data.

Shares of GM are about unchanged over the past 12 months, while Ford has risen 10%, both drastically underperforming the broader market, with a slump in China car sales hurting investor sentiment in both of those companies.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 385.94.

The projected upper bound is: 520.31.

The projected lower bound is: 470.53.

The projected closing price is: 495.42.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 33 white candles and 16 black candles for a net of 17 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 94.2598. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 86.18. This is where it usually tops. 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 sell 30 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 203.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 17 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 23.080 at 492.140. Volume was 237% above average (trending) and Bollinger Bands were 118% wider than normal.

Open     High      Low     Close     Volume___
473.700 498.490 468.230 492.140 31,199,392
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 440.56 365.15 269.74
Volatility: 43 41 58
Volume: 13,847,267 9,969,305 9,572,910

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 82.4% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect very strong flows of volume into TSLA.O (bullish). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 14 periods. Our momentum oscillator is currently indicating that TSLA.O is currently in an overbought condition.

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