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How Did Investors React to Tesla’s 4Q17 Vehicle Deliveries Data?

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Jan. 12 2018, Updated 10:33 a.m. ET

Tesla stock

In 4Q17, Tesla (TSLA) stock remained under pressure and lost about 8.7%. Nevertheless, the stock yielded an impressive 45.7% positive return in 2017.

Tesla posted its record high of $389.61 per share in September 2017 but turned negative after that. This decrease was primarily due to its weak 3Q17 Model 3 deliveries and production issues, which we discussed in the previous article. Now, let’s see how investors reacted to Tesla’s 4Q17 deliveries and production figures.

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How did investors react?

On the day Tesla released its 4Q17 vehicle deliveries and production numbers, its stock traded on a negative note and ended the session with about 1% value erosion. However, the stock seems to be going through a roller coaster ride in January as it jumped up after testing a key support level near $310.00 last week.

On January 8, 2018, Tesla stock was trading with 8% YTD (year-to-date) gains. This performance was far better than the 2.8% rise seen in the S&P 500 Index (SPY) (SPX-INDEX) so far in 2018. The stock prices of automakers (IYK) General Motors (GM), Ford (F), and Fiat Chrysler (FCAU) rose 7.9%, 5.3%, and 21.0% YTD, respectively.

Technical indicators

The 14-day RSI (relative strength index) for Tesla was hovering at 59.6, above the line of equilibrium. In general, RSI levels above 50—also known as the line of equilibrium—reflect its underlying strength in the momentum.

On January 8, Tesla stock settled at $336.41. This closing price was right above its 200-day SMA (simple moving average) of $332.41, fueling the possibility of a positive shift in its price trend.

Continue to the next part to see how Tesla’s valuation multiples look after its 4Q17 deliveries data.

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