Tesla, Inc. (NASDAQ:TSLA) What Can We Expect in the Upcoming Months?
Despite the recent recovery displayed by Tesla’s stock, there are some bad omens which paint the company’s financial future in uncertain colors. Tesla have managed to come up with cheaper models compared to its $90,000- luxury Tesla Roadster sportscar. These models, such as the Model 3 sedan ($37,000) and the about to be launched Model Y crossover SUV ($47,000), appeal to much wider audiences.
However, cheaper cars tend to have lower margin. That becomes significant when you constantly have to invest abundant resources in order to ensure you stay at the forefront of technology. Tesla will have to find a way to lower its manufacturing costs like it did with its batteries selling them 20 % lower than its competitors.
In addition, demand for Tesla’s cars may shrink in the foreseeable future. The federal tax credit decrease for purchasing a Tesla car that came into force on January 1 has already hurt the company as was demonstrated in its Q1 earnings report. On the first of July the tax credit will decrease once more from $3,750 to just $1,875. This decrease will further reduce demand for the more expensive, and thus more profitable, models.
Lastly, Tesla CEO, Elon Musk, has promised more than once that by 2020 Tesla would be able to launch a fleet of robotic taxis and autonomous cars. In reality, however, the company’s products are still quite far from technological maturity, especially when it comes to the radar and camera systems meant to be installed in every car.
To put things in perspective, the technical aspect has always been the Achilles heel of the autonomous vehicle industry. Tesla’s competitors (i.e. Alphabet’s (GOOGL) Waymo) are also quite far from building a system that can replace human driving, not to mention mass production of such a system.
What’s the Bottom Line?
In light of its recent recovery and analysts’ positive reviews, at present Tesla’s stock can definitely be considered a good investment channel. However, in the long run, investors should remain vigilant and closely monitor new developments that may cause it to sink into the red zone again.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 245.59.
The projected lower bound is: 205.40.
The projected closing price is: 225.49.
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.
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 72.5757. This is not an overbought or oversold reading. The last signal was a sell 5 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 58.26. 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 11 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 98. This is not a topping or bottoming area. The last signal was a sell 0 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 10 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 1.690 at 226.430. Volume was 40% below average (neutral) and Bollinger Bands were 11% wider than normal.
Open High Low Close Volume___
225.110 227.770 221.060 226.430 6,575,135
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 215.47 229.49 288.34
Volatility: 48 58 71
Volume: 12,089,119 12,118,839 9,799,584
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 21.5% below its 200-period moving average and is in an upward 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 bullish on TSLA.O and have had this outlook for the last 4 periods.