buy tesla stock on earnings and maxwell acquisition? - energy storage devices
Tesla shares (TSLA -Get Report)
After the company announced its fourth fortune, it continued to grow --
Quarterly earnings last week. Earnings of $1.
$93 per share, 27 cents lower than analysts expected, with revenues of $7.
Revenue of $23 billion was $0. 11 billion higher than expected, up about 120% year on yearover-year.
After these gains, the performance of the stock was very complicated because at the end of the conference call, Tesla announced that its chief financial officer would resign.
CEO Elon Musk also hinted that spending would be increased and looked back at some of the company's upcoming products, such as the Y-model and Tesla's half-car schedule.
From the potential weakening of the US Model 3, there is a lot to digest here. S.
The third expansion model in China and Europe.
There is concern about the cash flow situation, and in less than a month, $0. 92 billion worth of debt will expire.
If Tesla's share price falls below $359.
88, it will owe all convertible debt balances in cash, not 50-
50 combinations of cash and inventory planned to be used.
It seems that all of this is not enough, and the automaker announced on Monday that it will buy Maxwell Technology for $4. 75 per share.
The company expects the deal to be completed in the second quarter and will become a subsidiary of Tesla. The all-
Stock trading ranked 54.
Maxwell's products, which are mainly energy storage devices, are at a premium of 7%.
Before the deal was announced, Maxwell's market value was about $0. 14 billion, and the fact that Tesla used shares to finance the deal was not surprising.
In fact, the Bulls are digesting all this news very well.
However, most of the past year has been very volatile, and Tesla's shares have remained flat since the beginning of 2018.
This has frustrated many traders about the inability of stocks to move in one direction or another.
But if we look at the scope, there is something to use.
In the earnings forecast, we said: Now, this is still a push.
The share price is over $310, but with 21-day and 200-
Tesla's stock is not out of the woods yet, and the daily moving average is coming.
This one looks like it will remain volatile in the future.
If you lose $300, Bulls need to be cautious in the short term.
More than $320 and short positions need to be aware of the potential breakthrough in resistance to falling trends (purple line).
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