Tesla shares gain for a second session in a row on Monday, third-quarter deliveries rise, but Model 3 is faced with “production bottlenecks”

According to a Monday statement by Tesla Inc (TSLA), its third-quarter deliveries grew 4.5% from a year ago, but however, “production bottlenecks” obstructed the planned increase for the companys Model 3 mass-market sedan.

Tesla shares closed higher for a second consecutive trading session on Monday. The stock edged up 0.13% ($0.43) to $341.53, with the intraday high and the intraday low being at $343.70 and $335.51 respectively.

In after-hours trade the stock retreated 1% to $337.84.

In the week ended on October 1st the shares of the electric car manufacturer lost 2.85% of their market value compared to a week ago, which marked a second consecutive period of decline. The stock has edged up 0.13% so far during the current month, following a 4.16% slump in September. The latter has been a second loss out of seven months. For the entire past year, the shares of the NASDAQ-listed electric car maker lost 10.97%. However, the stock has gained 59.82% so far in 2017.

Tesla said that 220 Model 3 sedans were delivered during the third quarter, while 260 vehicles were produced.

“It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain”, the auto maker said in a statement, cited by Reuters. “We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near term.”

In its second-quarter report, the company had noted that “a rate of 5 000 Model 3 vehicles per week by the end of 2017” was expected to be achieved. Additionally, at some point in 2018, the production rate was expected to be increased to “10 000 Model 3 vehicles per week”.

A total of 26 150 vehicles were delivered during the third quarter of the year, or 17.7% more compared to the second quarter. That figure included 14 065 Model S cars and 11 865 Model X vehicles.

According to the electric car maker, it is set to deliver approximately 100 000 Model S and X vehicles in 2017.

According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Tesla Inc’s stock price, have a median target of $318.50, with a high estimate of $464.00 and a low estimate of $155.00. The median estimate is a 6.74% decrease compared to the closing price of $341.53 on October 2nd.

The same media also reported that 8 out of 24 surveyed investment analysts had rated Tesla Inc’s stock as “Hold”, while 6 – 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 – $342.28
R2 – $343.03
R3 (Range Resistance – Sell) – $343.78
R4 (Long Breakout) – $346.03
R5 (Breakout Target 1) – $348.67
R6 (Breakout Target 2) – $349.87

S1 – $340.78
S2 – $340.03
S3 (Range Support – Buy) – $339.28
S4 (Short Breakout) – $337.03
S5 (Breakout Target 1) – $334.39
S6 (Breakout Target 2) – $333.19

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

Central Pivot Point – $344.66
R1 – $353.91
R2 – $366.73
R3 – $375.98
R4 – $385.24

S1 – $331.84
S2 – $322.59
S3 – $309.77
S4 – $296.96