Tesla, Inc. (NASDAQ:TSLA) to cut Fremont factory workforce from 10,000 to 2,500 amid coronavirus order
Tesla, Inc. is reducing its workforce at its Fremont factory from 10,000 people to around 2,500 amid a regional shutdown to curb the spread of the coronavirus pandemic.
Alameda County Sheriff’s Sgt. Ray Kelly said that Tesla had told him on a phone call that it would take on a “step-down reduction.” Kelly said the company is not allowed to manufacture cars under a health order that went into effect Tuesday, mandating that businesses shut down non-essential operations
(Manufacturing cars) violates our health order and we’re asking them to go back to basic minimum functions.
Neither the sheriff’s office nor Tesla could be reached for comment.
Previously, multiple news outlets had reported that Tesla was continuing to operate its factory normally on Tuesday and Wednesday, telling employees that they would need to use their paid time off if they stayed home — despite the regional health order that requires “non-essential” businesses, including automakers, to close their physical operations for the next three weeks other than to maintain the value of inventory, ensure security, or process payroll and employee benefits.
Businesses are also permitted to continue the minimum necessary activities needed to allow employees to work from home.
The sheriff’s office had said on Twitter on Tuesday afternoon that Tesla does not qualify as an essential business as defined in the health order that Alameda County had issued the day before.
A woman whose husband works in the factory told the Business Journal on Wednesday morning that he had been told that he was still required to come to work, despite that he and his colleagues work in “very close proximity” to one another.
The company has begun deliveries of its new Model Y, a fully electric midsized SUV. Tesla’s stock price closed 16.03 percent lower on Wednesday amid coronavirus-driven market chaos, at $361.22 per share. That’s still up 35 percent from a year ago.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 509.31.
The projected lower bound is: 209.52.
The projected closing price is: 359.41.
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 24 white candles and 26 black candles for a net of 2 black candles.
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 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 6.4567. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 12 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 24.28. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 17 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 -165.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 12 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 sell 16 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed down -68.980 at 361.220. Volume was 100% below average (consolidating) and Bollinger Bands were 168% wider than normal.
Open High Low Close Volume___
389.000 404.860 350.510 361.220 64,806
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 565.92 656.53 370.50
Volatility: 152 144 88
Volume: 15,569,550 21,220,476 11,854,403
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 2.5% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume out of TSLA.O (mildly bearish). Our trend forecasting oscillators are currently bearish on TSLA.O and have had this outlook for the last 11 periods. Our momentum oscillator is currently indicating that TSLA.O is currently in an oversold condition.