Tesla (TSLA, $447.09) reportedly cut China price; could post record third quarter deliveries

Tesla Inc.  has reportedly slashed prices for its Model 3 sedan in China, and could be ready to publish record third quarter deliveries later this week.

The electric carmaker’s China website indicates that starting prices for its Model 3, which are now made in its Shanghai factory, have been lowered -8% to around $36,800 each. The longer-range version’s price was reduced to around $40,000 each.

The new models will also include cheaper lithium iron phosphate batteries, according to Reuters report.

Another report,  from Electrek'news website, suggested that Tesla's third quarter deliveries could come in at a record high later this week, and a substantial part of that is its strong China sales which surpassed 11,000 last month.

According to the Street forecasts, Tesla's third quarter deliveries will rise to around 140,000 vehicles, compared to a 90,650 for the second quarter.

Tickeron's analysis shows: 

TSLA sees MACD Histogram crosses below signal line

TSLA saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 04, 2020. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 44 instances where the indicator turned negative. In 35 of the 44 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 80%.

Current price $446.91 is above $377.42 the highest support line found by A.I. Throughout the month of 08/28/20 - 09/30/20, the price experienced a -3% Downtrend, while the week of 09/23/20 - 09/30/20 shows a +13% Uptrend.

Technical Analysis (Indicators)

Bearish Trend Analysis

The 10-day RSI Indicator for TSLA moved out of overbought territory on September 02, 2020. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 40 similar instances where the indicator moved out of overbought territory. In 28 of the 40 cases, the stock moved lower in the following days. This puts the odds of a move lower at 70%

The Stochastic Indicator may be shifting from an upward trend to a downward trend. In 43 of 63 cases where TSLA's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 68%.

The Momentum Indicator moved below the 0 level on September 29, 2020. You may want to consider selling the stock, shorting the stock, or exploring put options on TSLA as a result. In 44 of 67 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 66%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 68%.

Bullish Trend Analysis

Following a +8.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in 235 of 307 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.

TSLA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

The Aroon Indicator entered an Uptrend today. In 216 of 288 cases where TSLA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 75%.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 80%. During the last month, the daily ratio of advancing to declining volumes was 1.29 to 1.

The Tickeron Valuation Rating of 100 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: TSLA's P/B Ratio (40.49) is slightly higher than the industry average of (-0.72). TSLA's P/E Ratio (1116.34) is considerably higher than the industry average of (202.54). TSLA's Projected Growth (PEG Ratio) (3.64) is slightly higher than the industry average of (1.40). Dividend Yield (0.00) settles around the average of (1.77) among similar stocks. P/S Ratio (8.69) is also within normal values, averaging (35635.43).

The Tickeron SMR rating for this company is 89 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. TSLA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 9 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.

The Tickeron PE Growth Rating for this company is 3 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

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