Tesla (NASDAQ:TSLA) Drops a Huge Bombshell with Q3 2020 Results

Tesla (NASDAQ:TSLA) Drops a Huge Bombshell with Q3 2020 Results

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Tesla
Ticker: NASDAQ:TSLA
Price: $422.64

Tesla Outlook

Tesla reported by far its best quarterly profit Wednesday and said it still hopes to hit its target of half a million car sales this year.

The strong results and ambitious goal were good news to investors in the high-flying stock, which has gained more than 400% so far this year. Shares of Tesla (TSLA) climbed once again in after-hours trading on the earnings report.

There had been doubts that Tesla could achieve its goal of delivering 500,000 cars to customers this year, given the shutdown of its plant in Fremont California, earlier due to the Covid-19 pandemic ordered by local health authorities. It has delivered 319,000 cars in the first three quarters of this year.

Tesla reported net income of $874 million excluding special items, up 156% compare to what it made on that basis a year ago and nearly double its second quarter profit. Analysts had been forecasting earnings of $593 million.

Including special items, net income came in at a more modest $331 million. That was more than triple its second quarter earnings, which were released as it was coming off of the temporary lockdown of its plant.

Revenue hit $8.8 billion, up 39% from a year ago. And cash flow more than tripled to $1.4 billion. Between the cash generated by operations and the money raised in recent stock sales, the once cash-starved company ended the quarter with $14.5 billion in cash on hand, up 69% in just three months.

Musk also elaborated on a tweet from Tuesday that a beta version of Tesla’s its full self-driving technology had been rolled out to a handful of its vehicles.

“We’re starting very slow and very cautiously because the world is a complex and messy place,” he said on the call. The technology will be released to more people in coming weeks, he added, and will hopefully be in wide release by year end.

There have some who questioned the safety of Tesla’s self-driving technology and whether it’s ready for widespread use. Musk insisted the best way to make it safer is if it’s used as widely as possible, because the feedback from the system will allow the feature to learn and become safer.

Musk also said that he believes all methods of transportation will eventually be autonomous.

Business Summary

Tesla, Inc., formerly Tesla Motors, Inc., designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products.

The Company operates through two segments: Automotive, and Energy generation and storage.

The Automotive segment includes the design, development, manufacturing, and sales of electric vehicles.

The Energy generation and storage segment includes the design, manufacture, installation, and sale or lease of stationary energy storage products and solar energy systems to residential and commercial customers, or sale of electricity generated by its solar energy systems to customers.

The Company produces and distributes two fully electric vehicles, the Model S sedan and the Model X sport utility vehicle (SUV). It also offers Model 3, a sedan designed for the mass market.

It develops energy storage products for use in homes, commercial facilities and utility sites.

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 498.29.

The projected lower bound is: 352.90.

The projected closing price is: 425.60.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 6.9521. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 4 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 49.58. 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 sell 34 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 -54. This is not a topping or bottoming area. The last signal was a sell 3 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 sell 1 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 0.700 at 422.640. Volume was 54% below average (consolidating) and Bollinger Bands were 47% narrower than normal.

Open     High     Low     Close     Volume
422.700  432.950  421.250 422.640   32,370,460
Technical Outlook
Short Term:        Oversold
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period     50-period     200-period
Close:           437.41        414.17        233.74
Volatility:      38            118           116
Volume:          35,940,980    72,944,232    82,972,272

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 80.8% 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 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 3 periods.

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