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    • Buckle up the Tesla ride is going to be bumpy This looks like the time for traders to bet against Tesla (TSLA) shares in the short term as the market reacts to reports that Model 3 electric vehicle (EV) deliveries are going to be delayed with news stories about escalating production costs, production line issues and lay-offs throwing doubt on the company’s ability to turn a significant profit on its new model. The chart above shows that after steep rise of 68% throughout the year the share price is showing signs of volatility. Barclays were among the first to advise their clients to short Tesla with their analyst Brian Johnson suggesting a $210 price target – well below the $340 consensus on Wall Street. Barclays feel Tesla’s November 19 announcement about truck production will be decisive in swaying investor confidence in the company. Tesla are projecting production targets of several million per year in the near future as well as significant progress in other business opportunities like battery storage. On the back of these projections some analysts have been uber-bullish about Tesla with Morgan Stanley’s Adam Jonas – who is widely followed on Wall Street – raising his 12-month price target from $317 to $379. Jonas is basing his outlook on a long-term perspective. Traditional manufacturers, like General Motors, have revealed plans to roll out their own EVs raising fears about Tesla’s ability to handle competition. However, Tesla have already made a huge investment in infrastructure for EVs (over $8 billion), on service centres, stores, galleries and the world’s largest battery factory as well as proprietary investment in superchargers and destination chargers globally. And this is where Tesla have a significant advantage over traditional manufactures.
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    • Historical volatility
      Historical volatility reflects the past price movements of an underlying asset. Generally, this is calculated by determining the average deviation from the average price of a financial instrument in the given time period. Historical volatility is important because it helps to predict future price movements and estimate or calculate risk.
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