Tesla Stocks are Down, even after the launch of Cybertruck, Know Here

Dow Jones futures rose modestly early Friday, along with S&P 500 futures and Nasdaq futures. The Tesla Cybertruck has been unveiled, with CEO Elon Musk announcing the futuristic electric truck starts at $39,900. Tesla stock fell before the open, while Splunk (SPLK), Pure Storage (PSTG), Ross Stores (ROST) and StoneCo (STNE) moved on earnings

Tesla Cybertruck

The Cybertruck, which looks like something out of a 1980s post-apocalyptic movie, will have three versions. The base model is $39,900, with a range of 250 miles and a towing capacity of 7,500 pounds. A second model will be $49,900, with a range of 300 miles and a towing capacity of 10,000 pounds. The $69,900 Tesla Cybertruck will have a range of 500 miles and a towing capacity of 14,000 pounds.

Self-driving features, which are not yet available, will cost $7,000.

Reservations start at $100.

Musk touted the Cybertruck’s “bulletproof” frame and “unbreakable” glass. He had someone throw a baseball-sized metal ball at the windows. They didn’t shatter, but they cracked badly. Musk seemed surprised and displeased. “For a little weird reason it broke now, I don’t know why,” he said.

Many analysts were unsure about the Cybertruck’s design and likely market.

“Styling is polarizing, to say the least,” said Matt DeLorenzo, senior executive editor at Kelley Blue Book. “I don’t see how he can hit a $40,000 base price using the stainless-steel body and supposed armored glass. It will probably appeal to those who never owned a pickup, but as far as traditional truck owners, it might not be as attractive. It will be a niche product at best and poses no threat in the pickup market as we know it today.”

Tesla stock fell in the premarket, though it’s still in buy range. Since its June 3 low, Tesla stock has doubled.

You can read more here “Cybertruck” by Tesla is here, “won’t scratch and dent” – Musk

Earnings Movers

Meanwhile, Splunk stock, Pure Storage stock, Ross Stores stock and StoneCo stock were notable earnings movers.

Splunk stock jumped, building the right side of a base. StoneCo stock climbed, signaling a move back above its 50-day line. Ross Stores stock edged higher, staying in buy range as it works on yet another base. Pure Storage stock crashed on weak results after recently breaking out from a flawed base.

Dow Jones Futures Today

Dow Jones futures rose 0.2% vs. fair value, along with S&P 500 futures. Nasdaq 100 futures climbed 0.3%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Tesla Cybertruck Questions

After critics said the upcoming Model Y looks like a slightly larger Model 3, no one could say the Tesla Cybertruck is a cookie-cutter model. With its 1980s-futuristic trapezoid design, it’ll turn heads. But will the Cybertruck appeal to contractors and traditional pickup owners?

Tesla says the $39,900 and $49,900 models will begin production in late 2021, with the tri-motor $69,900 version launching in 2022. General Motors (GM) said Thursday it’ll launch an electric pickup in late 2021, about when Ford (F) is expected to debut its own EV truck.

Where will the Tesla Cybertruck be produced? How much capital spending will Tesla need to get it launched? Can Tesla make money on a sub-$40,000 Cybertruck, given the profitability concerns with the rarely seen $35,000 base Model 3?

The Tesla Model Y crossover is due out in mid-2020. It’s still unclear when the new Roadster or Tesla Semi will hit the roads.

Tesla Stock

Tesla stock fell 3.5% to 342.28 in the premarket, still above a recent buy point. On Thursday, Tesla stock rose 0.7% to 354.83, holding just inside a buy zone. Earlier this month, Tesla stock cleared a 340.94 handle buy point from a long, deep consolidation. Tesla stock is approaching its Dec. 7 peak of 379.49 and its Aug. 7, 2018, an all-time high of 387.46.

Tesla stock has run up 100% from its June 3 multiyear low.

Shares won’t react to the Tesla Cybertruck until Friday’s premarket.

Keep in mind that Tesla stock fortunes in the near term have a lot more to do whether the company can deliver sustained earnings, including a successful Model Y rollout and Shanghai plant ramp-up, than the Tesla Cybertruck.

Splunk Stock

Splunk earnings and revenue both topped views. The data analytics software firm, which is expanding into cybersecurity, also gave bullish guidance.

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Splunk stock climbed 7.2% to 136 before the open. Shares are working on a long, choppy consolidation with a 143.80 buy point. Splunk stock has been trending higher for a few weeks, retaking its 200-day line on Wednesday. But its relative strength line has trended lower since February. Splunk stock also has had three straight failed breakouts.

Pure Storage Stock

Pure Storage earnings narrowly topped views. But the data storage firm reported the slowest revenue growth in years and gave weak guidance. Pure Storage stock plunged 22% to 15.41 before the open.

Earlier this month, Pure Storage stock cleared a cup-with-handle base with a 19.81 buy point. But there were a number of flaws. The base was 46% deep. Bases that are more than 40% deep are more likely to fail. Also, Pure Storage stock didn’t have a prior uptrend before forming the base. Indeed, it hit a two-year low in August. Finally, much of the base formed below the 200-day moving average, which is not a good sign.

Ross Stores Stock

Ross Stores earnings and sales topped Wall Street views, with the 13% EPS gain representing the third straight quarter of slowly accelerating growth. The off-price retailer reiterated in-line guidance for Q4. Rival TJX Cos. (TJX) gave a weak outlook on Tuesday.

Ross Stores stock rose 1.1% to 113 before the open, which would still be in the range from a 108.30 buy point. Shares climbed 1.2% to 111.79 on Thursday, rebounding from their 50-day line. Ross Stores stock is close to forming a new flat base with a 114.93 entry.

StoneCo Stock

The Brazilian payments firm reported strong net income and revenue growth for the third quarter. StoneCo stock initially fell after hours but rose 2.3% to 35.13 in the premarket. StoneCo stock has fallen 9.4% so far this week, undercutting its 50-day line on Thursday. Shares are working on a 39.55 buy point from a cup-with-handle base going back to early April. One could view the handle as its own consolidation with a 38.47 entry.

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