Tesla, Inc. (NASDAQ:TSLA) The Financial Risk of an Unsafe Company

Tesla, Inc. (NASDAQ:TSLA) The Financial Risk of an Unsafe Company

Tesla, Inc. (NASDAQ:TSLA) The Financial Risk of an Unsafe Company

The automaker has been taking an all-out approach to meeting its Model 3 production targets at the end of June. The company did in fact eclipse the 5,000-a-week mark during the last week of the month, but some are questioning Tesla’s practices to get there.

Recent reports talk about 12- to 16-hour shifts at times, where workers look like zombies. Another report says that a handful of employees had to walk through raw sewage in order to “keep the line going.” Perhaps the most glaring revelation came from November 2016 (a while ago, but unknown until this morning), where a worker was goofing around on a forklift and ended up injuring another employee. Tesla says both employees were horsing around, although the injured one ended up having his leg amputated as a result.

Tesla is still a young automotive company. It’s trying to now produce 20,000 Model 3s a month, a vehicle that Tesla essentially wasn’t producing a year ago. Throw in the company’s higher use of manual labor vs. its plans for automation, and the fact that Tesla put together a third assembly line under a tent, and the safety concerns seem warranted. Particularly with Tesla’s past.

Again, all of this seems to be improving. While still far from ideal, surely stepping through sewage (if true) is less of an ordeal than having one’s leg removed (even if it was the result of his horsing around rather than a company-caused misstep). But these lessons and mistakes are likely to add up over time, both financially and reputation-wise. That’s a blemish Tesla won’t want on its record.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 345.06.

The projected lower bound is: 289.03.

The projected closing price is: 317.05.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

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 68.1982. This is not an overbought or oversold reading. The last signal was a buy 3 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 45.85. 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 sell 16 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 -55. This is not a topping or bottoming area. The last signal was a buy 3 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 12 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -2.250 at 316.710. Volume was 34% below average (neutral) and Bollinger Bands were 18% wider than normal.

Open High Low Close Volume___
321.430 323.230 312.770 316.710 5,721,166

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

Moving Averages: 10-period 50-period 200-period
Close: 323.35 313.30 320.48
Volatility: 52 56 51
Volume: 9,994,812 8,988,701 7,202,570

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 1.2% below its 200-period moving average and is in an downward trend. Volatility is low 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.

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