Tesla, Inc. (NASDAQ:TSLA) start taking orders in China

Tesla, Inc. (NASDAQ:TSLA) start taking orders in China

Tesla, Inc. (NASDAQ:TSLA) start taking orders in China

U.S. electric vehicle maker Tesla Inc said it will start taking orders in China on Friday for a lower-priced version of its Model 3 car, as it seeks to accelerate China sales hit by trade friction between Washington and Beijing.

After gaining a significant foothold in the United States, American electric car company Tesla Inc. is aiming to accelerate global sales with the focus on European Union and China. Following the trade issues between Washington and Beijing, Tesla adopted a smart strategy to ensure it remains competitive in world’s most populous country. The company broke ground on its first Gigafactory manufacturing plant in China, as well as lowered its prices to keep a profitable foothold in the country.

Expansion Into China

The California-based company made a deal with the Chinese government to lease land in the country for 50 years. As a part of land acquisition, Tesla’s founder and CEO was also offered a permanent residency in China, as reported by Daily Mail.

Currently Tesla exports all the cars from its California plant to China, but the company is now in the process of building a factory in Shanghai, where in the first phase it will produce batteries and Model 3. Second phase will see the manufacturing of upcoming Model Y, an SUV built on the Model 3 platform, completing Elon Musk’s naming plan of ‘S3XY’.

“We need to bring the Shanghai factory online. I think that’s the biggest variable for getting to 500,000-plus a year,” Tesla owner Elon Musk told CNBC. “Our car is just very expensive going into China. We’ve got import duties, we’ve got transport costs, we’ve got higher costs of labor here. And we’ve never been eligible for any of the EV tax credits.”

“A lot of people criticize Tesla for being so dependent on incentives. In fact, for a company making EVs, we have the least access to incentives. It’s pretty crazy. Because there’s so many countries that have put price caps on the EV incentive which differentially affect Tesla. And in China, which is the biggest market for EV’s, we’ve never had any subsidies or tax incentives for vehicles.

The company confirmed that Chinese customers are now allowed to place orders for a long-range, rear-wheel drive Model 3 variant, which should cost 433,000 Chinese Yuan ($64,300.56), with the cheapest, entry level medium-range Model 3 starting at mere 243,000 CNY ($35,950). Previous rumors pitched the starting price for a long-range, all-wheel-drive Model 3 at 499,000 Yuan but that figure proved to be off by almost $10,000.

Meanwhile, Tesla, Inc stock seems to be in a good long-term stock predictions.

Analysts say that Tesla can be a profitable investment option. With a 5-year investment, the revenue is expected to be around +51.83%. The current $100 investment may be up to $151.83 in 2024.

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 320.57.

The projected upper bound is: 349.60.

The projected lower bound is: 274.56.

The projected closing price is: 312.08.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

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).

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 84.7723. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 5 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 47.65. 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 100 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 0. This is not a topping or bottoming area. The last signal was a buy 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 1 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 0.680 at 312.890. Volume was 18% below average (neutral) and Bollinger Bands were 13% wider than normal.

Open High Low Close Volume___
312.980 315.300 301.880 312.890 7,352,082

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

Moving Averages: 10-period 50-period 200-period
Close: 300.98 331.85 315.29
Volatility: 37 74 74
Volume: 8,936,702 7,616,583 9,050,913

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 0.8% below its 200-period moving average and is in an downward 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 bearish on TSLA.O and have had this outlook for the last 10 periods.

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