TSLA – Weekly Chart
The price of Tesla is testing the $203.93 level after fading from its early-2023 rally.
Barchart reported that two large blocks of Tesla stock options were traded on May 30: one was a near-term in-the-money put order expecting losses, while the other was a long-term call option expecting significant gains.
The report from Barchart said that more than 13,000 put options traded at the $202.50 strike price for expiry on June 2. It’s possible that the investor was worried about the US debt ceiling outcome and was adding downside protection.
The second block trade was over 13,000 call options traded with a $310 strike price for expiration on Oct. 20, 2023. That is a $100 rally from the current price and may also be looking at stability in US politics.
Ford Motor Company recently announced a deal with Tesla to provide its customers with Tesla charger station access. Tesla will have access to government subsidies as part of the deal. Ford EV customers will get access to 12,000 chargers across the US and Canada beginning in Spring 2024.
The deal was surprising after Tesla’s year was spent in 2023 slashing prices in an attempt to hurt its competition in the EV market. Tesla investors hope that the appointment of a new CEO at Twitter will lead to a revival for the automaker.
“Twitter in our opinion was a distraction for Musk,” Ives wrote, adding that he thought Musk would remain CEO of Tesla for “at least for the next 5 years.”
Another Tesla bull, Ark Invest’s Cathie Wood, said she expects Tesla’s stock to rally 1,030% to $2,000 by 2027, which she hopes to come from the company’s future robo-taxi business. During Tesla’s shareholder meeting this year, Musk praised Wood’s valuation model as the best analysis of robo taxis.