Daily Tesla Trade Alert (2/1/24

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New month same daily Tesla trade!

I’m bearish on Tesla today. For one, look at the chart:

There was a ton of buying pressure, trying to push the price up yesterday. That’s what the long top wick means. But despite all of that buying pressure, it barely even moved the stock price.

So, that’s the technical analysis. But if we zoom out, there’s some big news that dropped on Tesla yesterday. In 2018, Musk made a deal with shareholders that if he grew Tesla successfully, and hit 12 different tranches of operational and financial goals, then he would get $55 billion in compensation.

Again, the shareholders agreed. No regulator said anything. And then, Musk actually did it. But now, a judge is saying that the compensation package was “unfair.” But how was it unfair? Musk achieved everything he promised. The shareholders agreed to this deal, and the shareholders who didn’t have a vote made a wondrous amount of money as Tesla’s stock skyrocketed.

Now, Elon is trying to reincorporate Tesla into Texas, where something like this can’t happen. Obviously, this is a tremendous amount of turmoil for the company. It’s crazy that the judge would strike this deal down post-facto, especially since Elon achieved every one of his promises.

Anyways, going with puts today:

Trade Idea:

Price Target: $180

Options Contract: 2 FEB 24 $180 PUT