With the recent earnings reported from TESLA along with some analysts suggesting a lower target price, the formula for TESLA to break-out could be upon us once again. History as the blueprint along with some information from a TESLA expert could help us to fully understand what’s under the hood of the world-wide leader in electric cars. Starting with TheStreet’s Katherine Ross & Jim Cramer in an interview with Rob Maurer from Tesla Daily, we learn more about Q1-2021 earnings and how tax credits and sales of Bitcoin played a role. Further, we get Rob’s perspective on Tesla’s record-setting profitable quarter, exceeding expectations despite an industry-wide shortage of chips. Finally, we’ll hear about some lesser-known TESLA Solar Products while Katherine and Jim ask a few tough questions (URL below).
Today’s sock and activity are similar to last year’s momentum and run-up. And short sellers had to cover their positions and were forced to buy the stock causing it to rocket up even more. Then, while in overdrive, TESLA finished the record-setting race and split 5:1 in late August 2020. Our recommendation back then was to purchase the January 2021 950 CALLs which, at the time were selling for around $19 ($19 x 100 = $1,900). That CALL surged to as high as $331,000 for a 174-fold gain. YES, we got lucky!
Fundamentals along with the current market capitalization & cash in the bank just don’t support the current stock price as only a car company, however Tesla is actually a technology company offering cars, batteries, software, solar products and rumors suggest even more to come on the horizon.
All-up, all-in, this creates an incredibly volatile scenario for betting with or against Tesla using options which are speculative and highly risky. Bottom line . . . if I’ve learned one thing from all of the research others and I have done on Elon Musk over the years it’s this . . . DON’T BET AGAINST ELON MUSK!
UPDATE 10-13-2021 – I may have called this one a few months early but I’m doubling down now for TSLA to hit 1000 in November and 1200 by year end. Contributing factors are oil prices & supply along with strong Tesla numbers internationally while most other automobile companies were negative. Take a look at the November 19th 2020 CALLS strike price 1200 and your 50-cent bet should grow 5-fold at a minimum if not more.