Tesla, Inc. (NASDAQ:TSLA) offering $650 million of common stock and $1.35 billion in convertible senior notes due in 2024 in two separate offerings

Tesla, Inc. (NASDAQ:TSLA) offering $650 million of common stock and $1.35 billion in convertible senior notes due in 2024 in two separate offerings

Tesla, Inc. (NASDAQ:TSLA) offering $650 million of common stock and $1.35 billion in convertible senior notes due in 2024 in two separate offerings

A week after posting a huge first-quarter loss and saying the company needs to raise cash, Tesla is doing just that. The company said Thursday that it’s offering $650 million of common stock and $1.35 billion in convertible senior notes due in 2024 in two separate offerings.

The company anticipates gross proceeds of about $2.3 billion, before discounts and expenses. CEO Elon Musk will participate, buying $10 million worth of stock, the company said.

Last week, Tesla reported its cash balance at the end of the first quarter shrunk by $1.5 billion since December, to $2.2 billion. Musk said during a conference call that Tesla might need to raise capital again. The company will use the proceeds “to further strengthen its balance sheet, as well as for general corporate purposes,” according to a press release.

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 281.97.

The projected upper bound is: 267.64.

The projected lower bound is: 218.23.

The projected closing price is: 242.93.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 29.9897. This is not an overbought or oversold reading. The last signal was a buy 2 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 38.90. 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 3 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 -67. This is not a topping or bottoming area. The last signal was a buy 0 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 8 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 10.090 at 244.100. Volume was 98% above average (neutral) and Bollinger Bands were 0% wider than normal.

Open High Low Close Volume___
245.520 247.130 237.720 244.100 18,159,340

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

Moving Averages: 10-period 50-period 200-period
Close: 249.96 274.56 306.43
Volatility: 56 56 74
Volume: 13,894,768 10,499,574 9,452,490

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 20.3% 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 14 periods.

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