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Tesla shares close lower on Friday, Evercore ISI downgrades the stock due to Model 3 uncertainty

Evercore ISI was reported to have downgraded Tesla Inc (TSLA) from “Outperform” to “In-Line” due to uncertainty over production of the companys Model 3. The firm also revised down its price target for the stock to $312 from $330.

Tesla shares closed lower for the fifth time in the past seven trading sessions on Friday. The stock went down 1.62% ($5.30) to $320.87, after touching an intraday low at $316.66, or a price level not seen since August 2nd ($311.22).

In the week ended on October 29th the shares of the luxury electric vehicle manufacturer lost 7.02% of their market value compared to a week ago, which marked a third consecutive period of losses. It has also been the steepest weekly retreat since the week ended on September 24th.

The stock has extended its loss to 5.93% so far during the current month, following a 4.16% slump in September. The latter has been the second loss out of seven months.

For the entire past year, the shares of the NASDAQ-listed electric car maker lost 10.97%. However, the stock has gained 50.16% so far in 2017.

George Galliers, analyst at Evercore ISI, considers the Model 3 as “the most important piece of the Tesla investment story in coming quarters”.

As third-quarter production “clearly” has been below market expectations, “at this point we have little insight into how production is running”, Galliers said.

Earlier in October the auto maker said “production bottlenecks” had obstructed the planned increase for its Model 3 mass-market sedan.

The Evercore analyst also revised down his Model 3 production forecasts as follows: by 20 000 units in 2017, by 8 000 units in 2018, by 10 000 units in 2019 and by 7 000 units in 2020.

According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $324.00, with a high estimate of $500.00 and a low estimate of $155.00. The median estimate is a 0.98% surge compared to the closing price of $320.87 on October 27th.

The same media also reported that 8 out of 25 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while 7 – as “Buy”. On the other hand, 7 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

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

R1 – $321.60
R2 – $322.32
R3 (Range Resistance – Sell) – $323.05
R4 (Long Breakout) – $325.23
R5 (Breakout Target 1) – $327.78
R6 (Breakout Target 2) – $328.91

S1 – $320.14
S2 – $319.42
S3 (Range Support – Buy) – $318.69
S4 (Short Breakout) – $316.51
S5 (Breakout Target 1) – $313.96
S6 (Breakout Target 2) – $312.83

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

Central Pivot Point – $329.16
R1 – $341.66
R2 – $362.45
R3 – $374.95
R4 – $387.45

S1 – $308.37
S2 – $295.87
S3 – $275.08
S4 – $254.29

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