Shares of the electric-vehicle behemoth, Tesla Inc., experienced a nearly 3% dip on Monday, a surprising turn of events given the premarket gain observed earlier. The decline came in the wake of the announcement that Chief Financial Officer (CFO) Zachary Kirkhorn would be relinquishing his role. Having dedicated four years as the CFO and a commendable 13 years with Tesla, Kirkhorn's departure is significant.
Prior to the disclosure of Kirkhorn's exit, Tesla's stock (TSLA) was demonstrating a promising uptick, with a rise of approximately 0.6%. It's worth noting that Tesla's executive lineup has remained relatively unchanged in recent times. This stability followed a series of executive exits in 2018 and 2019. Notably, July 2019 saw the departure of Chief Technology Officer J.B. Straubel, and earlier in January of the same year, Deepak Ahuja, the preceding CFO, also left the company.
By the time morning trading was in full swing, Tesla's stock had declined by 2.9%, positioning it for a potential six-week closing low.
In the aftermath of Kirkhorn's announced departure, Tesla was quick to name a successor. Chief Accounting Officer Vaibhav Taneja, who has been with Tesla as the CAO since March 2019 and served as the corporate controller from May 2018, will be stepping into the CFO role. To ensure a smooth transition, Kirkhorn will continue to serve Tesla until the end of the year.
Ben Kallo at Baird commented on the transition, noting that Kirkhorn would be succeeded by "an experienced successor."
Interestingly, amidst these corporate shifts, the Aroon Indicator for TSLA has projected a bullish trajectory for the stock. On July 28, 2023, Tickeron's A.I.dvisor detected a bullish signal, with the AroonUp green line surpassing 70 and the AroonDown red line remaining under 30. Historically, when the up indicator crosses the 70-mark while the down indicator stays below 30, it's typically a harbinger of a bullish move. This could suggest that traders might consider purchasing the stock or even explore buying call options. A closer look at historical data reveals that out of 317 similar Aroon Indicator patterns, 273 cases resulted in the stock climbing in the subsequent days. This places the probability of a bullish move at an impressive 86%.
While Tesla faces internal changes with key executive departures, the market indicators suggest potential growth on the horizon. Only time will tell how these shifts will play out in the long run for the electric car giant.
TSLA moved below its 50-day moving average on September 21, 2023 date and that indicates a change from an upward trend to a downward trend. In of 26 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on September 22, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on TSLA as a result. In of 75 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for TSLA turned negative on September 22, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSLA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TSLA broke above its upper Bollinger Band on September 11, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where TSLA's RSI Oscillator exited the oversold zone, of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The 10-day moving average for TSLA crossed bullishly above the 50-day moving average on September 13, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in of 352 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 334 cases where TSLA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable 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 (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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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.
The Tickeron Valuation Rating of (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: P/B Ratio (15.337) is normal, around the industry mean (6.743). TSLA has a moderately high P/E Ratio (70.423) as compared to the industry average of (20.678). Projected Growth (PEG Ratio) (2.097) is also within normal values, averaging (5.664). TSLA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.040). P/S Ratio (9.132) is also within normal values, averaging (52.056).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of electric sports cars
A.I.dvisor indicates that over the last year, TSLA has been loosely correlated with RIVN. These tickers have moved in lockstep 57% of the time. This A.I.-generated data suggests there is some statistical probability that if TSLA jumps, then RIVN could also see price increases.