Tesla, Inc. (NASDAQ:TSLA) stock falling after CEO Elon Musk commented on production estimates again

Tesla, Inc. (NASDAQ:TSLA) stock falling after CEO Elon Musk commented on production estimates again

Tesla, Inc. (NASDAQ:TSLA) stock falling after CEO Elon Musk commented on production estimates again

Just two months after he tweeted a production figure forecast, Tesla’s chief executive has done it again just days after he had to appear in court because the Securities and Exchange Commission accused him of violating an agreement to first ask the board of directors for approval of any tweets that might move Tesla stock.

Bloomberg reports that the tweet comes amid concern about the future performance of the company after reports that Tesla and Panasonic were shelving their plans to expand the production capacity of the Nevada gigafactory.

The tweet was actually a reply to another network user’s tweet in a discussion regarding the future value of electric cars and Tesla’s in particular. However, if the SEC is watching Musk as closely as its reaction to his previous tweet suggests, chances are it will again try to get him in line with the help of the court system.

The financial markets regulator in February asked a judge to hold Elon Musk in contempt for violating a deal the regulator struck with the Tesla chief executive last year, which requires him to get the approval of the Tesla board of directors before tweeting anything that could “be material to investors.”

The tweet that prompted the SEC move said that Tesla will manufacture half a million cars this year. The tweet, however, was quickly followed by another one, clarifying that “Meant to say annualized production rate at end of 2019 probably around 500k, ie 10k cars/week. Deliveries for year still estimated to be about 400k.” 

The judge was not impressed, however, and told both sides to “Take a deep breath, put your reasonableness pants on, and work this out,” giving them until this Thursday to settle their differences out of court. If they fail to do so, Judge Alison Nathan will rule on the contempt charge.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 288.98.

The projected lower bound is: 241.95.

The projected closing price is: 265.46.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 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).

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 24.9067. This is not an overbought or oversold reading. The last signal was a sell 7 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 41.89. 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 149 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 -117.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 7 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 2 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -1.320 at 266.380. Volume was 18% above average (neutral) and Bollinger Bands were 44% narrower than normal.

Open High Low Close Volume___
268.630 268.880 258.630 266.380 10,038,579

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

Moving Averages: 10-period 50-period 200-period
Close: 274.45 288.02 310.52
Volatility: 57 52 74
Volume: 10,016,405 8,866,701 9,263,967

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 14.2% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 2 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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