Tesla, Inc. (NASDAQ:TSLA) unveils a $35,000 Model 3

Tesla, Inc. (NASDAQ:TSLA) unveils a $35,000 Model 3

Tesla, Inc. (NASDAQ:TSLA) unveils a $35,000 Model 3

Tesla chief Elon Musk said late Thursday that the automaker was preparing to sell the cheapest version yet of its newest electric car, the Model 3, while quietly rolling back promises that helped position Tesla as a groundbreaking automaker.

Signaling that he’s getting back to business after months of controversy, Musk said on Twitter that the sedan, with its “mid-range” battery pack, would cost $35,000. That would bring it in line with the mass-market model he had promised for years would revolutionize the availability of electric cars

A Tesla spokesperson said the removal was not reflective of a change in plans and was instead made to “streamline our purchase experience for customers.” Customers, the spokesperson said, could still preorder the option by special request.

But some Tesla analysts said the move seemed to reflect that the technology was further from reality than the company has suggested. Matthew Avery, director of research for Thatcham Research, commended Tesla for trying to dispel confusion about the technology but said much more could be done.

Musk sparked a frenzy of customer reservations in 2016 when he said the Model 3 would cost $35,000 before incentives, such as a $7,500 federal tax credit — a price point that would help Tesla expand beyond its traditional core of well-heeled buyers. That model, however, remains delayed until 2019, the company said Thursday.

The surprise announcement, delivered via tweet to Musk’s 23 million followers, comes as Tesla seeks to steer attention away from a chaotic period in which Musk battled with critics, smoked marijuana during an interview and pledged that he had the money to take Tesla private — a promise for which he was sued by the Securities and Exchange Commission. That case was recently settled.

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 297.47.

The projected upper bound is: 296.65.

The projected lower bound is: 219.65.

The projected closing price is: 258.15.

Candlesticks

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 23 white candles and 27 black candles for a net of 4 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 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 43.9825. This is not an overbought or oversold reading. The last signal was a buy 6 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 42.52. 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 29 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 -45. 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 2 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -3.910 at 260.000. Volume was 8% below average (neutral) and Bollinger Bands were 6% wider than normal.

Open High Low Close Volume___
267.390 269.660 253.500 260.000 9,375,549

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

Moving Averages: 10-period 50-period 200-period
Close: 261.31 295.03 312.14
Volatility: 64 85 69
Volume: 9,289,629 10,148,216 8,696,113

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 16.7% below its 200-period moving average and is in an downward trend. Volatility is high 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 9 periods.

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