Tesla shares gain the most in three months on Tuesday, company sees no need to raise additional capital as Model 3 production increases

Tesla Inc said on Tuesday that 2 020 Model 3 sedans had been manufactured during the last week of March, which curbed speculation that the company might need additional capital this year and also lent support to its shares.

Tesla shares closed higher for the third time in the past eight trading sessions on Tuesday. It has also been the sharpest daily surge since January 8th. The stock went up 5.96% ($15.05) to $267.53, after touching an intraday high at $273.35, or a price level not seen since March 27th ($304.27).

In the week ended on April 1st the shares of the luxury electric vehicle manufacturer lost 11.74% of their market value compared to a week ago, which marked a fifth consecutive period of decrease. It has also been the worst performance since the week ended on July 9th 2017.

The stock has gained 0.47% so far during the current month following a 22.42% slump in March. The latter has been a second consecutive monthly drop and also the largest one since December 2010.

For the entire past year, the shares of the NASDAQ-listed electric car maker rose 45.70% following a 10.97% drop in 2016.

The announced figure is still below Teslas objective to achieve a production rate of 2 500 vehicles per week at the end of March. However, the production numbers were significantly better compared to those during the last week of 2017, when only 793 Model 3 sedans were manufactured.

“Tesla continues to target a production rate of approximately 5,000 units per week in about three months, laying the groundwork for Q3 to have the long-sought ideal combination of high volume, good gross margin and strong positive operating cash flow”, the company said in a filing, cited by Reuters. “As a result, Tesla does not require an equity or debt raise this year, apart from standard credit lines.”

“We were able to double the weekly Model 3 production rate during the quarter by rapidly addressing production and supply chain bottlenecks, including several short factory shutdowns to upgrade equipment”, Tesla Inc explained.

The company also said that about 500 000 advance reservations from customers had been received for the Model 3 sedan.

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $310.00, with a high estimate of $500.00 and a low estimate of $170.00. The median estimate is a 15.87% surge compared to the closing price of $267.53 on April 3rd.

The same media also reported that 9 out of 28 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while other 9 – 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 – $269.26
R2 – $270.99
R3 (Range Resistance – Sell) – $272.72
R4 (Long Breakout) – $277.90
R5 (Breakout Target 1) – $283.96
R6 (Breakout Target 2) – $287.36

S1 – $265.80
S2 – $264.07
S3 (Range Support – Buy) – $262.34
S4 (Short Breakout) – $257.16
S5 (Breakout Target 1) – $251.10
S6 (Breakout Target 2) – $247.70

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

Central Pivot Point – $273.98
R1 – $299.74
R2 – $333.36
R3 – $359.12
R4 – $384.89

S1 – $240.36
S2 – $214.60
S3 – $180.98
S4 – $147.37