Tesla Motors stock (TSLA) fell 4 percent on Thursday, after the company reported deliveries on the low end of Wall Street expectations.
Based on its market cycles, I believe the stock will face increasing downside risk in the coming months.
Tesla reported that during Q3 it produced 96,155 automobiles, which falls on the low end of analyst estimates of 95,000 to 100,000. Management also reported that it delivered 97,000 cars during the quarter.
Joseph Osha at JMP Securities nonetheless downgraded TSLA to market perform noting that, “Yesterday’s announcement was the first time since covering the stock that we found ourselves wondering whether demand growth for Tesla’s cars might be leveling off.”
Our approach to stock analysis uses market cycles to project price action.
Having touched our price resistance zone twice, I believe TSLA stock may now be entering the declining phase of its current cycle. My target is $210 by December. This could be a base forming – as long as it holds $178, it sets up a better Q1 2020.
Tesla Motors (TSLA) Stock Weekly Chart
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