TESLA LAUNCHES $35,000 MODEL 3, STOCK BELOW MA20
In the pre-market trading session, Tesla’s stock was trading at 307-lower by 4.03% as compared to the previous closing price.
The electric carmaker said on Thursday that it is finally launching its long-awaited standard Model 3 starting at $35,000 and shifting all sales online. CEO Elon Musk said that the interior will be slightly better than was originally promised.
The CEO also said that the company won’t turn a profit in the first quarter, although he expects the automaker will return to profitability in the second quarter. CEO Musk anticipates demand of more than 500,000 Model 3s a year. Tesla delivered 145,610 Model 3s in 2018 at far higher prices.
The company is pushing all sales online and to mobile devices and reducing showroom staff as well. By shifting sales online, CEO Musk said the company will be closing some stores and laying off employees, which allows it to save money and lower the price of the car.
On the technical front, the current price is above the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards. The current price is below the MA20. The stock is expected to trade lower today.
TRADE SUGGESTION- LIMIT SELL AT 308.50 TAKE PROFIT AT 304.50 STOP LOSS AT 310.50