$TSLA Tesla Model 3 Runs Into “Production Bottleneck”

Well, we now know why we had persistent weakness in Tesla’s stock. Here’s the latest on production numbers from the model 3:

The electric-car maker said Monday that it produced 260 Model 3 sedans and delivered 220 of the cars in the third quarter, after holding a launch event for the car at the end of July that included the delivery of the first few cars to employees. Chief Executive Elon Musk has said that he expected Tesla to produce 100 Model 3 cars in August and ramp up to 1,500 in September, with plans to produce 5,000 Model 3 cars a week by the end of the year.

“Model 3 production was less than anticipated due to production bottlenecks,” the company said in its announcement Monday. “Although the vast majority of manufacturing subsystems at both our California car plant and our Nevada Gigafactory are able to operate at high rate, a handful have taken longer to activate than expected.” READ MORE

On the “Production Bottleneck” news, the stock is down 1.62% in the after-hours session, basically right back down to today’s low. $335.51, to be exact, was today’s low and we may slice right through it tomorrow judging by the late action. The stock likely has a date with the 200 day moving average at this point. See below:

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Godspeed $TSLA longs.

Stocks are trading to the upside as we start a new week and fresh new quarter. Out the gate, names like SQ, TWLO, CLF, YELP, DDD, & KBH are squeezing to the upside.

I’ve uploaded our Exodus runner screen to finviz to give you a clear view of what is squeezing higher as we begin Q4: CLICK HERE FOR CHARTS

Healthcare leads to start the week:

The bulls did a good job on Friday dressing windows to end the third quarter. Both, Technology & Healthcare, lead the way higher on Friday, all while utilities sold off. The bulls need the current leaders, Healthcare & Tech, higher to continue this historic run. Let’s see if they continue as we begin Q4.

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On a weekly basis, your industry leaders are found below. It’s hard to get bearish when the semiconductor chips are leading, it’s always a good sign for the bulls. Also, look at the 3D stocks finding their way back on our weekly hybrid screen:

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And, for review this weekend, the following names have had the largest move in Hybrid score inside our trading software, Exodus. For those of you confused as to what the hybrid score is CLICK HERE.

Into next week, let’s keep an eye on SOHU, TTD, BABA, WDAY, WYNN, & RENN:

I’ll be back later with some top ranked stocks within our system. Have a good weekend all!

Elon Musk doesn’t just want to take humans to Mars, he wants to use his next spaceship to take them from New York to Los Angeles, in 25 minutes.

Traveling at roughly 18,000 miles an hour at its peak, voyagers could cut trips that take several hours by airline—Los Angeles to Honolulu, Hong Kong to Singapore, New York to Paris—in less time than it takes to get your first drink on a normal flight.

Roughly a half hour from New York to Paris, for the cost of a full-fare economy seat, he says. READ MORE

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$TSLA is gapping higher this morning, with a lot of fresh shorts in the name. Keep it on your radar today.

Piper Jaffray is out with some interesting notes today. The investment firm reiterates its overweight rating for Tesla shares, predicting the electric car maker will thrive in China’s auto market. Piper notes,”China could eventually be Tesla’s biggest source of revenue,” the firm’s analyst writes.

“If Tesla sidesteps [its] obstacles by making EVs locally, the company may be well-positioned to build on its recent successes … The company was wise to delay investment, but once these JV-related policy details are finalized, we expect Tesla to announce its China strategy in relatively short order.”

The analyst reaffirmed his $386 price target for Tesla shares, representing 12 percent upside to Tuesday’s close.

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I like the location of $TSLA here as long as it holds the 340 level. The trade is easy to manage with a stop under recent lows. I took a position here, and will be keeping my stop tight. The other side of this slope is steep. Developing….

It’s a tug-a-war battle this morning as both bulls & bears fight for control. If the bulls do get the upper hand here, keep an eye on $BABA for possible move back to previous highs. The stock landed on top of our runner screen this morning, inside Exodus, and looks good to squeeze fresh short sellers. Here’s a daily look:

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Other names to watch from today’s screen include: FIT, SPWR, LITE, AAOI, PBYI, ACIA, and dare I say DRYS.

CLICK HERE FOR TODAY’S RESULTS

Be careful out there today….