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Tesla shares close lower on Monday, Model 3 passes regulatory requirements for production

The Model 3 sedan by Tesla has passed all regulatory requirements for production two weeks in advance, according to a tweet by CEO Elon Musk on July 2nd.

Tesla shares closed lower for a fourth time in the past six trading sessions on Monday. The stock went down 2.49% ($8.99) to $352.62, after touching an intraday low at $351.50, or a price level not seen since June 12th ($350.62). In the week ended on July 2nd the shares of the electric car manufacturer lost 5.70% of their market value compared to a week ago, which marked the first drop in the past six weeks and also the steepest one since the week ended on December 4th 2016. However, the stock rose 6.04% in June, which has been the fourth consecutive monthly gain, but yet, the smallest one since April 2016. For the entire past year, the shares of the NASDAQ-listed electric car maker lost 10.97%.

“(Model 3) Production grows exponentially, so Aug should be 100 cars and Sept above 1,500”, Elon Musk said in a tweet, cited by Reuters. “Looks like we can reach 20,000 Model 3 cars per month in Dec.”

“Expecting to complete SN1 on Friday”, Musk also said in a reference to the first vehicle off assembly line, which will be available for sale.

In May, Teslas Chief Executive said that production of the companys Model 3 was set to start in Fremont, California in July.

The electric car maker has previously announced that more than 5 000 Model 3 sedans per week could be produced by the end of 2017, while “at some point in 2018” the number of Model 3 vehicles, produced on a weekly basis, could reach 10 000.

Priced at $35 000, Model 3 is expected to be delivered to first 30 clients on July 28th.

According to CNN Money, the 18 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $277.50, with a high estimate of $464.00 and a low estimate of $155.00. The median estimate is a 21.30% decrease compared to the closing price of $352.62 on July 3rd.

The same media also reported that 7 out of 23 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, and 7 – as “Buy”. On the other hand, 6 analysts had recommended selling the stock.

Weekly Pivot Levels

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

Central Pivot Point – $367.55
R1 – $381.01
R2 – $400.40
R3 – $413.86
R4 – $427.31

S1 – $348.16
S2 – $334.70
S3 – $315.31
S4 – $295.91 is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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