Tesla shares rebound on Friday, company settles lawsuit related to Autopilot system

Last week Tesla Inc said it had agreed to settle a class action lawsuit with owners of Model X and Model S vehicles, who claimed Tesla’s Autopilot system was ”essentially unusable and demonstrably dangerous”. However, financial details of the agreement remained undisclosed.

Tesla shares closed higher for the fourth time in the past twelve trading sessions on Friday. The stock went up 0.36% ($1.00) to $278.85, with the intraday high and the intraday low being at $279.64 and $275.61 respectively.

In the week ended on May 27th the shares of the luxury electric vehicle manufacturer added 0.73% to their market value compared to a week ago, which marked the fourth gain out of five weeks.

The stock has pared its loss to 5.12% so far during the current month, following a 10.43% surge in April. The latter has been the first gain out of three months.

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 lawsuit was filed in 2017 by six owners of Tesla Model X and Model S cars from California, Colorado, Florida and New Jersey. They accused the auto maker of being engaged in fraud by concealment and of state consumer protection and unfair competition law violation.

The plaintiffs said that additional $5 000 had been paid for equipping their vehicles with the Autopilot software, that was meant to provide additional safety features. However, it turned out to be ”completely inoperable”, they alleged.

Other allegations pointed to some features not working as expected. Those include automated emergency braking, side collision warnings as well as auto high beams.

The owners also said the Autopilot system was not reliable to use due to unexpected braking for no reason and no braking when large vehicles such as buses or trucks were approached.

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $291.00, with a high estimate of $530.00 and a low estimate of $180.00. The median estimate is a 4.36% surge compared to the closing price of $278.85 on May 25th.

The same media also reported that 11 out of 27 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 6 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

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

R1 – $279.22
R2 – $279.59
R3 (Range Resistance – Sell) – $279.96
R4 (Long Breakout) – $281.07
R5 (Breakout Target 1) – $282.36
R6 (Breakout Target 2) – $282.93

S1 – $278.48
S2 – $278.11
S3 (Range Support – Buy) – $277.74
S4 (Short Breakout) – $276.63
S5 (Breakout Target 1) – $275.34
S6 (Breakout Target 2) – $274.77

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

Central Pivot Point – $281.25
R1 – $289.09
R2 – $299.32
R3 – $307.16
R4 – $314.99

S1 – $271.02
S2 – $263.18
S3 – $252.95
S4 – $242.71