Tesla Cash Burn

Tesla broke through the key support in after hours trade on dismal earnings. The biggest concern was the increasing rate of cash burn. This combined with some very poor customer ratings for the model 3 and bottlenecks in the production process.

“Tesla reported an adjusted, non-GAAP loss of ($2.92), far worse than the expected loss of ($2.27), which was more than double the ($1.33) loss in Q2.”

TSLA daily before earning were released after hours. The stock price will open below the key support which is a neckline of the head and shoulders. Coming off a double top, the outlook is strong bearish for the stock at least in the short term.

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