Tesla, Inc. (NASDAQ:TSLA) will cut prices in China by 25 per cent

Tesla, Inc. (NASDAQ:TSLA) will cut prices in China by 25 per cent

Tesla, Inc. (NASDAQ:TSLA) will cut prices in China by 25 per cent

Nio, known as a Tesla challenger in mainland China, has stepped up a gear to consolidate its foothold in the mainland’s electric vehicle (EV) market, launching its second model targeting a broader customer base.

William Li Bin, chairman and founder of the Shanghai-based electric carmaker, said that the lowered tariff on American-made automobiles exported to China would have minimal impact on Nio’s sales amid buoyant demand for EVs in the world’s largest auto market.

Nio reported sales of more than 2,059 units of its ES8 model in October, outshining Tesla whose sales on the mainland totalled 211 for the month, down 70 per cent from a year earlier, after it raised prices by about 20 per cent due to an additional 25 per cent tariff imposed by Beijing, according to figures by the China Passenger Car Association.

Tesla disputed the figures without disclosing an exact number.

ES8 was the first model launched by Nio at the end of 2017, a seven-seat SUV that has a staring price of 448,000 yuan (US$64,927) before subsidies.

A Tesla Model S 75D sports costs 742,300 yuan.

Tesla is building a factory in Shanghai with an annual capacity of 500,000 units, which will help it make its cars more affordable to Chinese customers.

Nio followed on the heels of Xpeng Motors, another Chinese electric car start-up which started delivering the first batch of its five-seater G3 SUVs on Wednesday.

The G3 SUVs are priced between US$29,000 to US$41,000.

China’s auto market is likely to see a year-on-year sales drop this year, the first since 1992.

However, new-energy vehicle sales hit 860,000 units in the first 10 months of this year, up 75.6 per cent from the same period in 2017.

“I am still bullish about China’s auto market, particularly in the electric vehicle segment, since it is the new growth driver here,” said Li. “Nio will continue to focus on building high-performance, high-end EVs to chase further growth.”

Overall, the bias in prices is: Upwards

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 331.10.

The projected upper bound is: 397.95.

The projected lower bound is: 336.30.

The projected closing price is: 367.13.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 65.2474. This is not an overbought or oversold reading. The last signal was a sell 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 59.40. 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 67 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 82. This is not a topping or bottoming area. The last signal was a sell 0 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 6 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed down -11.080 at 365.710. Volume was 35% below average (neutral) and Bollinger Bands were 41% narrower than normal.

Open High Low Close Volume___
375.000 377.870 364.330 365.710 6,337,555

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 363.07 323.26 312.83
Volatility: 34 66 71
Volume: 7,340,372 8,912,770 9,213,393

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 16.9% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. 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 35 periods.


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