Tesla is defying its critics to enter the realm of the most highly valued companies in the United States. On December 21, Tesla (NYSE: TSLA) will join the S&P 500, valued at more than $551 billion to the index. The auto manufacturer’s Model 3 is the world’s best-selling electric car in history, delivering 139,000 vehicles in the third quarter alone.
Tesla’s inclusion in the S&P 500 is significant for the auto industry – but it’s also a major leap forward for clean energy. As I noted last year, Tesla has made significant investments in the control of battery power using the Internet of Things. While Tesla will always be known for the electric car, in the long run, its clean energy and Internet of Things (IoT) technology may be more transformative for how we live our lives.
In particular, Tesla is reducing the cost of batteries – typically one of the most expensive components in an EV – by shifting to in-house manufacturing and improving the design of the battery cells. Through these innovations, the company believes it could reduce the cost of batteries by 56% ($/kWh). With many other auto manufacturers rushing to produce EVs, batteries could be at the point that solar panels were 5 years ago when it comes to cost – and about to hit the “Nike NKE -0.8% swoosh”.
Tesla’s inclusion in the S&P 500 is a historic moment for the clean energy industry. Despite its critics, the electric vehicle and clean energy company proved has achieved a high valuation among stock market investors. The company just announced that it plans to raise as much as $5 billion through a sale of its stock – capital which will go towards plans to boost its manufacturing capacity even further and will cement its dominance as the world’s first electric vehicle company.
Tesla is at the cusp of a broader trend towards emerging technologies and clean energy. Other companies in this sector will follow suit. One way to gain access to growth in renewable energy is through the iShares S&P Global Clean Energy Index Fund (ICLN) ICLN +1.4%, an ETF of global equities in the clean energy sector, which is up nearly 100% year-to-date. Invesco’s Solar ETF (TAN) has also performed well this year, with a YTD total daily return of over 160%.
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.
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 491.80.
The projected upper bound is: 697.38.
The projected lower bound is: 591.27.
The projected closing price is: 644.32.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white 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 67.3903. This is not an overbought or oversold reading. The last signal was a sell 3 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 67.71. 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 3 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 18 period(s) ago.
Rex Takasugi – TD Profile
TESLA INC closed up 29.840 at 639.830. Volume was 100% below average (consolidating) and Bollinger Bands were 88% wider than normal.
Open High Low Close Volume 619.000 642.750 610.200 639.830 13,742
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 611.90 479.33 300.17 Volatility: 78 67 107 Volume: 46,554,960 39,200,596 69,133,232
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 113.2% above its 200-period moving average and is in an upward trend. Volatility is 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 17 periods.