Electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA) revealed manufacturing figures before publishing its third-quarter earnings results. Notably, production at Tesla declined sharply from the previous quarter, and the firm missed third-quarter estimates made by Wall Street analysts by a wide margin.
It becomes clear that there is an issue when one takes into consideration the estimates made by both Wall Street and Tesla. According to Wall Street analysts, Tesla was expected to produce over 460,000 units in the third quarter. The company’s performance was well below projections.
A little more than 1.3 million Teslas have been delivered so far this year. However, in the Q3 vehicle statistics press announcement, the company maintained its earlier volume prediction of 1.8 million vehicles for the whole year 2023.
Picks for you
Thus, it’s clear that Tesla will need to build far more than 450,000 vehicles to meet its target. The EV giant is also anticipated to have a hard time expanding its business due to the cost of capital and the high rate of inflation in the sector.
This latest development has prompted short-term traders to ponder if the present trend has attained its zenith or whether there exists the possibility for more expansion till the end of 2023. In order to get valuable perspectives, Finbold sought the assistance of CoinCodex’s artificial intelligence (AI) algorithms to evaluate the projected price of Tesla shares at the conclusion of the year.
The projected estimate of $235.28 at the conclusion of 2023 indicates a substantial decrease from its present value of $260.53 at the time of publication.
TSLA chart analysis
TSLA finds itself comfortably positioned in the upper echelon of its 52-week trading range, demonstrating resilience amidst a market that still hovers in the middle of its year-long spectrum.
Over the past month, TSLA’s price action has traversed a rather expansive corridor, ranging from $234.58 to $278.98. Presently, it maintains a position at the midpoint of this range, suggesting the potential for resistance to manifest on the upper side. Recent trading activity has witnessed a consolidation phase, resulting in reduced volatility.
An intriguing observation lies just above the current price, with a notable resistance zone commencing at $269.29. Strategically, an entry point may materialize right beyond this resistance zone, offering an appealing opportunity.
Conversely, there exists a support zone beneath the present price at $250.81, a critical level for consideration. Placing a ‘Stop Loss‘ order below this support zone could be a prudent risk management tactic.
A noteworthy development comes in the form of increased interest from significant market players in TSLA over the past few days, a positive indicator of the stock’s potential strength.
Delving further into technical analysis, a robust support zone spanning from $237.98 to $250.81 emerges, formed by the convergence of multiple trend lines and significant moving averages across various time frames. This zone serves as a formidable foundation.
On the opposing front, a formidable resistance zone extends from $269.29 to $270.95, fortified by the alignment of multiple trend lines across diverse time frames.
Buy stocks now with Interactive Brokers – the most advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
