TESLA STOCKS PLUNGE AFTER FIRST-QUARTER DELIVERIES MISS EXPECTATIONS
Tesla’s stock is currently trading at 266.84-lower by 8.56% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 10.61%. The stock has pared some of its losses after the opening bell.
The company announced on Wednesday that it had delivered about 63,000 cars in the first quarter of 2019. The delivery numbers were below the market expectation of 76,000. Tesla also said that it had produced about 77,100 cars during the quarter.
The electric carmaker also warned that the first-quarter income will be negatively affected because of lesser than expected delivery volumes and several pricing adjustments. Tesla, however, reaffirmed full-year guidance of 360,000 to 400,000 vehicle deliveries in the current year. The company also disclosed that around 10,600 vehicles were in transit to customers, reflecting strong demand in Europe and China towards the end of the quarter.
In other news, a federal judge in New York on Thursday will hear oral arguments in a lawsuit brought by the US Securities and Exchange Commission that seeks to hold Tesla CEO Elon Musk in contempt for violating a settlement deal.
On the technical front, the RSI is currently at 40.89% and suggests that the market can move in the downward direction. The current price is below the MA5. The %K has crossed the %D from above to the downside at around 75% and suggests that the market can move in the downward direction.
TRADE SUGGESTION- LIMIT SELL AT 267.10 TAKE PROFIT AT 263.10 STOP LOSS AT 269.10