Tesla, Inc. (NASDAQ:TSLA) to face lawsuit over Elon Musk’s take-private tweet
esla Inc. must face an investor lawsuit over Elon Musk’s notorious 2018 tweet about taking the electric car maker private.
The ruling means Tesla will have to provide documents and other evidence to the plaintiffs as the case moves forward. Musk will probably have to submit to a deposition. The judge’s ruling also increases the plaintiffs’ leverage in settlement talks, as investors seek billions of dollars in damages to cover their losses.
The company claimed that Musk’s Twitter post on Aug. 7, 2018 — “Am considering taking Tesla private at $420. Funding secured” — was “aspirational,” not fraudulent. But a San Francisco federal judge ruled Wednesday that shareholders’ lawsuit claiming the tweet was an intentional deception that jolted Tesla’s stock price can go forward.
Musk and Tesla each agreed to pay $20 million to settle a U.S. Securities and Exchange Commission suit over the tweet, without admitting guilt. But as Musk continued to tweet about the company, the settlement was amended a year ago to add specific topics he can’t tweet about without advance approval from a Tesla lawyer.
Chen ruled on Wednesday that shareholders made a strong enough case that Musk made false statements “in the scope of his role as CEO of Tesla, with knowledge of the inaccuracies of his statements — or was, at minimum, deliberately reckless when making such public disclosures” for the lawsuit to move forward.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 885.90.
The projected lower bound is: 598.85.
The projected closing price is: 742.37.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with TESLA INC), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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 88.9929. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 68.29. 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 19 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 147.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 18 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 buy 14 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 15.380 at 745.210. Volume was 9% above average (neutral) and Bollinger Bands were 32% wider than normal.
Open High Low Close Volume___
716.940 759.450 706.715 745.210 20,657,862
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 595.39 644.40 403.08
Volatility: 91 151 97
Volume: 19,883,494 19,971,784 12,886,343
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 84.9% above its 200-period moving average and is in an upward 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 moderate flows of volume into TSLA.O (mildly bullish). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 2 periods.