Tesla shares close lower on Thursday, Needham cuts rating on the stock to “Underperform” on possible pick-up in Model 3 cancellations

Shares of Tesla Inc (TSLA) retreated over 1% on Thursday after Needham & Co reportedly cut its rating on the stock from “Hold” to “Underperform”, as the firm cited a possible increase in Model 3 cancellations, slower sales of the auto makers Model S and X, margin pressure as well as more intense competition.

Tesla shares closed lower for the fourth time in the past nine trading sessions on NASDAQ on Thursday. The stock went down 1.12% ($3.62) to $320.23, after touching an intraday low at $314.01, or a price level not seen since July 17th ($308.50).

Shares of Tesla Inc have risen 2.85% so far in 2018 compared with a 14.94% 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.

“Based on our checks, refunds are outpacing deposits as cancellations accelerate”, Needham analyst Rajvindra Gill wrote in a note to clients, cited by CNBC. “The reasons are varied: extended wait times, the expiration of the $7,500 credit, and unavailability of the $35k base model.”

“In August 17, TSLA cited a refund rate of 12%. Almost a year later, we believe it has doubled and outpaced deposits. Model 3 wait times are currently 4-12 months and with base model not available until mid-2019, consumers could wait until 2020”, Gill also pointed out.

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $287.00, with a high estimate of $530.00 and a low estimate of $180.00. The median estimate is a 10.38% decrease compared to the closing price of $320.23 on July 19th.

The same media also reported that 10 out of 26 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while 7 – 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, todays levels of importance for the Tesla stock are presented as follows:

R1 – $321.10
R2 – $321.98
R3 (Range Resistance – Sell) – $322.85
R4 (Long Breakout) – $325.47
R5 (Breakout Target 1) – $328.53
R6 (Breakout Target 2) – $329.95

S1 – $319.36
S2 – $318.48
S3 (Range Support – Buy) – $317.61
S4 (Short Breakout) – $314.99
S5 (Breakout Target 1) – $311.93
S6 (Breakout Target 2) – $310.51

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

Central Pivot Point – $318.18
R1 – $328.37
R2 – $337.86
R3 – $348.05
R4 – $358.23

S1 – $308.69
S2 – $298.50
S3 – $289.01
S4 – $279.51