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Tesla Stock Is Dropping Again. (Insight)
Tesla, Inc. manufactures and sells fully electric vehicles, solar energy generation systems, and energy storage products. It also operates a network of vehicle service centers and Supercharger stations.
Earlier this month, Tesla has cut prices on the Model S and X, with price drops of 15-19% in the US on all trim levels (and similar cuts in the rest of the world), except for the brand-new Standard Range model which was introduced just over two weeks ago and is now no longer available.
The price cuts have resulted in a wave of orders for the Model X, which now qualifies for the US tax credit of $7,500. The estimated delivery dates of the flagship all-electric SUV have been pushed back from September to October 2023 to November to December 2023.
Tesla’s price cuts for its Model S and Model X vehicles will take a toll this year. The reductions will only be partially offset by higher prices for the Model 3, resulting in lower average selling prices across Tesla’s range and therefore gross margins.
Based on the 5-day chart, TSLA starts to fall on early September 21, 2023, from $272.84 to $254.86 in a span of 7 hours. The price stays flat around the $255.70 mark. Nevertheless, TSLA had managed a YTD price increase of 136.54%. The average price target is $270.80, a 5.91% upside from the current price of $255.70; with a high forecast of $400.00 and a low forecast of $120.00.
Technically speaking, based on TSLA’s technical indicators, TSLA is still a Buy. TSLA’s (MACD) indicator is 5.79, suggesting Tesla is a Sell, while TSLA’s Williams % R (14) is -44.33, which suggests TSLA is a Buy. In addition, TSLA’s 20-day, 50-day, and 200-day suggest the stock to remain on buy sentiment.
It might still be good to buy at a discount as its next earning is coming in less than 1 month’s time. The next expected earnings release is on Oct 18, 2023, with an estimated EPS of $0.8.
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