Tesla shares gain for a third session in a row on Thursday, company said to be nearing electric car production in China

June 23, 2017 7:50 am

Tesla Inc (TSLA) was reportedly moving closer to opening a facility for electric vehicle manufacturing in China, as on June 22nd the company said it was in exploratory talks with the municipal government of Shanghai. However, no specific time line for the construction project has been disclosed. By producing electric vehicles on Chinese soil, Tesla strives to avoid a 25-percent import tariff.

Tesla shares closed higher for a third consecutive trading session on Thursday. The stock went up 1.65% ($6.21) to $382.61, after touching an intraday high at $385.00 and also a fresh all-time high. In the week ended on June 18th the shares of the electric car manufacturer added 3.94% to their market value compared to a week ago, which marked a fourth consecutive period of gains, but yet, it has been the smallest increase since the week ended on April 30th. The stock has extended its advance to 12.20% so far during the current month, following an 8.58% surge in May. The latter has been a third consecutive month of gains. For the entire past year, the shares of the NASDAQ-listed electric car maker lost 10.97%.

Meanwhile, there has recently been an intense speculation on-line over which domestic companies Tesla Inc may cooperate with. For the time being, the majority of opinions have stressed on Tencent Holdings Ltd, as the latter has already bought a 5% stake in Tesla this year in a deal valued $1.8 billion.

At the same time, exchange filings by three other entities, Tianjin Motor Dies Co, Shanghai Electric Group Co and Shanghai Lingang Holdings Co, revealed no connections with Tesla in regard to its plans.

On the other hand, Tesla has not disclosed which of its models are to be manufactured in China. According to Reuters, citing a supplier familiar with Tesla Inc’s practices, the company’s Model 3 sedan and also a crossover known as Model Y are being considered.

Production of Tesla’s Model 3 is expected to be initiated next month at the company’s plant in Fremont, California, while production of Tesla’s Model Y is scheduled for mid-2019.

According to CNN Money, the 19 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $250.00, with a high estimate of $385.00 and a low estimate of $155.00. The median estimate is a 34.66% decrease compared to the closing price of $382.61 on June 22nd.

The same media also reported that 8 out of 24 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while 7 – as “Buy”. On the other hand, 6 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Tesla stock are presented as follows:

R1 – $383.66
R2 – $384.71
R3 (Range Resistance – Sell) – $385.75
R4 (Long Breakout) – $388.90
R5 (Breakout Target 1) – $392.57
R6 (Breakout Target 2) – $394.32

S1 – $381.56
S2 – $380.51
S3 (Range Support – Buy) – $379.47
S4 (Short Breakout) – $376.32
S5 (Breakout Target 1) – $372.65
S6 (Breakout Target 2) – $370.90

By using the traditional method of calculation, the weekly levels of importance for Tesla Inc (TSLA) are presented as follows:

Central Pivot Point – $368.76
R1 – $386.89
R2 – $402.39
R3 – $420.52
R4 – $438.66

S1 – $353.26
S2 – $335.13
S3 – $319.63
S4 – $304.14

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