Tesla, Inc. (NASDAQ:TSLA) ‘Massive’ delivery backlog in Europe, China blamed; company reaffirms yearly guidance
Tesla Inc. said late Wednesday it delivered about 63,000 vehicles in the first quarter, significantly fewer than analysts had expected.
Analysts surveyed by FactSet has expected 76,000 deliveries, with about 54,600 of those being Model 3 sedans. Tesla TSLA, +2.07% said only about 50,900 Model 3s were delivered.
The electric-car company cited a massive backlog of deliveries at the end of the quarter, which ended Sunday, thanks to a “massive increase” in deliveries to Europe and China. “We had only delivered half of the entire quarter’s numbers by March 21, ten days before end of quarter,” the company said in a statement.
Deliveries ended up being 31% less than the previous quarter, when Tesla also missed analysts’ expectations but still delivered 90,700 vehicles, including 61,394 Model 3s.
Tesla executives, including Chief Executive Elon Musk, reportedly had called for all employees to help deliver cars to customers before the end of the quarter. Tesla said Wednesday that at times, delivery levels were five times their prior peak. Despite the delivery crush, Musk still found time last weekend to release a novelty rap song and tweet extensively about emojis.
Tesla said it expects the deliveries shortfall to negatively affect its first-quarter income, but added: “Even so, we ended the quarter with sufficient cash on hand.”
Musk had previously warned that the company was unlikely to show a profit in the first quarter, but hoped to be back in the black in the second quarter.
Last week, Baird analysts said weak deliveries were already priced into the stock.
Overall, Tesla said it produced about 77,100 vehicles in the first quarter, including about 62,950 Model 3s. About 10,600 vehicles were still in transit to customers when the quarter ended.
Production outpaced deliveries by 22% in the quarter, Tesla said.
The company reaffirmed its 2019 guidance of 360,000 to 400,000 total vehicle deliveries.
The eagerly awaited deliveries report was released just after extended trading hours ended Wednesday. Tesla stock is coming off its worst month in a year, and ended the regular trading session up 2%. Its shares are down 12% year to date, compared to the S&P 500’s SPX, +0.21% 14.6% gain this year.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 313.87.
The projected lower bound is: 269.46.
The projected closing price is: 291.67.
A white body occurred (because prices closed higher than they opened).
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 28 white candles and 22 black candles for a net of 6 white 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 88.2711. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 9 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 55.08. 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 141 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 160.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 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 buy 4 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 5.930 at 291.810. Volume was 1% below average (neutral) and Bollinger Bands were 35% narrower than normal.
Open High Low Close Volume___
287.320 296.170 287.170 291.810 7,929,864
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 276.69 292.65 313.62
Volatility: 40 48 74
Volume: 7,532,253 8,530,560 9,201,038
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 7.0% 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 0 periods.