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Tesla Stock Began September 2017 on a Weak Note

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Sep. 13 2017, Updated 8:08 a.m. ET

Tesla stock

So far in this series, we’ve covered key updates for mainstream auto stocks (IYK) Fiat Chrysler (FCAU), Ford Motor (F), and General Motors (GM). In this part, we’ll look at Tesla (TSLA).

Last week, Tesla stock traded on a negative note and ended the week with a fall of ~3.4%. In the previous week, the stock rose ~2.1%. The stock’s performance turned mixed to negative after it reached an all-time high of $386.99 in June 2017. Its volatility has decreased recently.

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Key technical levels

After a failed test of the immediate resistance level of ~$356 in the final week of August, Tesla stock turned negative. On September 11, the stock retested the resistance, and a breach attracted fresh buying. Now, $356 should act as an immediate support.

Its 14-day RSI (relative strength index) score is hovering near 58.6, suggesting positive bias in its underlying momentum. On the upside, there is an immediate resistance at $369.

Recent updates

In the second quarter, Tesla’s adjusted net earnings per share were -$1.33, better than analysts’ estimate of -$1.76. Its 2Q17 car deliveries totaled 22,026 units, with a ~53% increase year-over-year but a 12% fall quarter-over-quarter. As a result, the company was only able to meet the lower range of its guidance in the first half of 2017. Earlier this year, Tesla guided to deliver 47,000–50,000 units in 1H17, and it managed to deliver about 47,100 units during that period. A quarter-over-quarter drop in its vehicle deliveries may have kept investors’ sentiments mixed in the last two or three weeks.

Tesla is expected to start delivering its much-awaited Model 3 to non-employee customers in 4Q17. The company’s ability to improve its deliveries and production rate could remain in focus in the third quarter. Any positive developments for Model 3 production could sustain investors’ optimism. Continue to the next part, where we’ll look at how Ferrari stock is trading in September.

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