Tesla shares close lower on Tuesday, company establishes three-member committee to evaluate go-private proposals

A special three-member committee has reportedly been formed on Tuesday by Tesla Inc’s board in order to evaluate any proposal by CEO Elon Musk to take the electric car maker private.

Tesla shares closed lower for the third time in the past six trading sessions on NASDAQ on Tuesday. The stock went down 2.46% ($8.77) to $347.64, after touching an intraday low at $347.10, or a price level not seen since August 10th ($346.00).

Shares of Tesla Inc have risen 11.66% so far in 2018 compared with a 16.43% gain for the underlying index, Nasdaq 100 (NDX).

In 2017, Tesla’s stock surged 45.70%, thus, it outperformed the Nasdaq 100, which registered a 31.52% return.

The committee includes independent directors Brad Buss, Robyn Denholm and Linda Johnson Rice and is authorized to take any action on behalf of Teslas board regarding evaluation and negotiation of a potential agreement or alternatives to any transaction, which CEO Musk proposes.

Brad Buss has been Chief Financial Officer of solar panel installer SolarCity for two years before his retirement in 2016.

Robyn Denholm currently serves as Chief Operations Officer at telecom company Telstra. Previously, she was Chief Financial Officer of network gear manufacturer Juniper Networks.

Linda Johnson Rice is Johnson Publishing Cos chairman.

Meanwhile, Elon Musk announced earlier this week that he was in negotiations with a Saudi sovereign fund in relation with his plan to take Tesla private. After that Musk said in a post on Twitter that buyout company Silver Lake and Goldman Sachs Group Inc were advising him on financial aspects of his go-private plan.

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $312.40, with a high estimate of $530.00 and a low estimate of $179.00. The median estimate represents a 10.14% downside compared to the closing price of $347.64 on August 14th.

The same media also reported that 9 out of 27 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while 8 – 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 – $348.75
R2 – $349.86
R3 (Range Resistance – Sell) – $350.97
R4 (Long Breakout) – $354.30
R5 (Breakout Target 1) – $358.18
R6 (Breakout Target 2) – $359.76

S1 – $346.53
S2 – $345.42
S3 (Range Support – Buy) – $344.31
S4 (Short Breakout) – $340.99
S5 (Breakout Target 1) – $337.10
S6 (Breakout Target 2) – $335.52

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

Central Pivot Point – $360.70
R1 – $382.25
R2 – $409.01
R3 – $430.56
R4 – $452.11

S1 – $333.94
S2 – $312.39
S3 – $285.63
S4 – $258.87