Tesla stock (TSLA) turned positive in the week ended September 21 and rose by 1.3% after posting a 12.1% rise in the previous week. The stock has seen a rollercoaster ride this year so far due to a number of reasons. These reasons include investors’ close attention to TSLA’s Model 3 production updates and CEO Elon Musk’s comments about privatizing the company. In the third quarter so far, Tesla has gone down by 12.6% as of September 24. On a quarter-to-date basis, peers (XLY) General Motors (GM), Ford (F), and Fiat Chrysler (FCAU) have lost 11.8%, 13.4%, and 3.1%, respectively.
Weekly technical outlook
TSLA stock fell to its five-month low of $263.24 (on a closing basis) on September 7. This price level of $263.24 should continue to act as a key support level in the coming weeks. Its 14-day RSI (relative strength index) indicator was near the line of equilibrium at 49.2, reflecting a mixed bias in the momentum. An immediate resistance in Tesla stock lies near the $308 price level followed by a key resistance near $327. The stock price was still below its 50-day SMA (simple moving average), which was near $312.80, suggesting minor weakness in the price trend.
On September 24, Musk apologized to a Tesla car reservation holder on Twitter for a delayed delivery in his AWD (all-wheel-drive) version of Model 3. In his tweet, Musk mentioned that Tesla is “running into an extreme shortage of car carrier trailers.” He also added that the company is building its own car carriers “to alleviate load.” TSLA is expected to report its third-quarter vehicle deliveries and production figures in the first week of October. Thus, investors’ expectations and updates related to the company’s car production and deliveries could add to TSLA stock’s volatility this week.
On September 7, a letter from Musk to Tesla employees was posted on the company’s official blog. In the letter, Musk claimed, “We are about to have the most amazing quarter in our history, building and delivering more than twice as many cars as we did last quarter.”
Continue to the next part where we’ll look at how Ferrari stock has traded in September so far.