Tesla (TSLA)
Another week to watch for the company’s 3rd quarter earnings report in Wall Street. And one of the companies that should be watched is Tesla, which has a report queue tonight after the US market closes. While this week the stock price has been reported by ARK Investment Management, which is not a major shareholder, but has always been a vocal supporter of Tesla, selling over 150,000 shares on the grounds that it is not about fear.
Ren Leggi, the firm’s client portfolio manager, said ARK’s conviction was as strong as ever and that the sales were related to overall trading strategies.
The company’s production and delivery numbers for the cars that came out in early October were better than the first and second quarters at 96,155 and 97,000, respectively. However, Wall street has predicted that Tesla sales may be at $ 6.4 billion, down 6% over the same period last year. And earnings per share may decrease –0.42 to -0.45 Dollars per share.
The survey found that Tesla’s car demand is growing in foreign countries like Europe and China more than the United States. Earlier this year, Tesla received official approval from the Chinese government to build a production base near Shanghai which is currently under construction and there is no information about when Tesla will be able to start producing cars in China.
Tesla approved the construction of production bases in China. This is because the Chinese government is serious about reducing air pollution by publicizing for their people to use more electric cars.
Another fact that spreads optimism for investors is the car model Y of Tesla which will begin production in late 2020. The Model Y has been spotted on test drives and is an important part of the company’s future sales growth.
From a technical perspective, after the stock price has continued to rise since the beginning of the month this week saw the stock price of Tesla stand back down and stand above the 200-day EMA with support lower down at 246.90 and 222.10. The 246.90 was a strong resistance level for 3 months. Meanwhile, if July’s peak at 266.00 breaks, it would trigger the attention further higher at the next resistance at 280.00.
Is the hope that the stock price will go back up to 300 possible? This year, the stock price has fallen below 200 already. Let’s wait and see.
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Chayut Vachirathanakit
Market Analyst – HF Educational Office – Thailand
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