Tesla Stock Forecast Based On Predictive Analytics

Tesla Motors (TSLA)

Last week, Tesla Motors (TSLA) CEO Elon Musk announced that he was considering doing something “fairly controversial” with the company’s patents. There is speculation that in order to speed up development of electric vehicles, Musk is considering releasing some of the company’s patented technology.

Your first reaction may have been that Mr. Musk may be succumbing to the pressure of his position or that he may be too willing to take too big of a risk. After all, Tesla has a strong foothold on the high-end long-range electric vehicles and there is clearly great potential with its more affordable third generation that will become available in the upcoming years. So what is actually going on here? Well, as a pioneer of the electric car, they have the advantage of setting the tone for developing the infrastructure.

Concurrently, Tesla debuted the company’s first right-side drive versions of the Model S in London. This award winning electric vehicle was recently introduced to the far-east market of China as the company has been expanding its presence in Europe. Tesla has two new models being developed and 2-3 Gigafactories being planned that will produce the batteries needed to increase production.

Tesla’s direct sales model strategy has made automobile dealership associations very nervous, as Tesla’s sales strategy threatens their way of conducting business. These dealers have been lobbying local state governments to disallow the direct sales model, and have succeeded so far in five states. Missouri was the latest state to attempt to block the Tesla but House Bill 1124 did not pass. Republican Majority Leader John Diehl stated that lawmakers were concerned that the bill would impede the free-market forces and thus result in unintended negative consequences if passed by the House. Influential players have chimed in on this matter, such as General Motors (GM) considers Tesla to be “circumvent[ing] long-established legal precedent[s] on how new motor vehicles are marketed…” Employees from Federal Trade Commission have publicly stated “very likely harming both competition and consumers” and that “House Bill 1124 would amplify the adverse effects of the current prohibition…[and] discourage innovation.” Musk stated in the Tesla blog that “dealers are again trying to ram through a provision under the cover of darkness and without public debate. The people of Missouri deserve better from their elected officials.” There are a lot of opinions on this heated issue and only time will tell how this will ultimately play out.

Shortly after Tesla Motors posted earnings the stock fell, reaching the $180 benchmark as predicted by our advanced self-learning algorithm. At I Know First, we promote algorithmic trading as a way to mitigate risk and optimize returns utilizing a market prediction system developed by our research team of mathematicians and scientists. In my previous Tesla article on Seeking Alpha, Algorithmic Forecast Indicates Tesla Is A Buy, TSLA shares rose 11% since publication. Figure 1 shows the algorithmic forecast shared in this article delineating a “buy” signal for the 1-month time horizon on May 9th. I will explain exactly how to read this very easy color-coded algorithmic forecast later when analyzing the most contemporary forecasts.

The discretion between the two returns just mentioned is because the 11% gain is from publication date in Seeking Alpha, May 11th and the charts return above is from one month exactly from the forecast date (May 9th). This market prediction system is not perfect and not every single forecast is accurate, so we never recommend blindly purchasing recommended assets. Instead, professional and retail investors use these algorithmic predictions as a tool to enhance portfolio performance, double-check their own analysis and act on market opportunities faster. Tesla In Europe Last year, 52,729 electric vehicles were sold on the European continent short of the 78,079 in the United States in 2013 (as of the end of October). The top five European countries for electric vehicle sales in 2013 are France, Norway, Germany, the U.K. and the Netherlands in that order.

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