Tesla’s stock is down 5% amid poor January sales, negative analyst notes, and BYD’s “God’s Eye”
Tesla’s stock is trading at its lowest price since November, down 5.6% today and 13% so far this year. That’s happening amid news that sales, rather than returning to growth as promised, are dropping around the world this year. It also comes amid several negative analyst notes, including one from Oppenheimer yesterday, saying that Tesla CEO Elon Musk’s bid for OpenAI is a “a distraction from Tesla’s core challenges.” Chinese competitor BYD also announced yesterday it will offer its “God’s Eye” self-driving system on all models.
Separately, Tallbacken Capital Advisors CEO Michael Purves is recommending an options trade targeting additional downside in the shares by the May expiry.
“The stock has just taken out key support levels and bearish momentum is building,” he wrote. “Implied volatility levels are close to the lowest levels they have been in a year, making options more affordable.”
Purves is highlighting the May $300/$250 put spread (that is, buy a $300 strike put, sell the $250 strike put), which, at the low end, marks a retreat of more than 20% from the current price.
Separately, Tallbacken Capital Advisors CEO Michael Purves is recommending an options trade targeting additional downside in the shares by the May expiry.
“The stock has just taken out key support levels and bearish momentum is building,” he wrote. “Implied volatility levels are close to the lowest levels they have been in a year, making options more affordable.”
Purves is highlighting the May $300/$250 put spread (that is, buy a $300 strike put, sell the $250 strike put), which, at the low end, marks a retreat of more than 20% from the current price.
