Tesla Inc (TSLA)

Volatile, up 110% before today, now 120%, trading at 80x forward PE. Is this a car or auto company? Their gross margins are going down and lack pricing power (are lowering prices).

They need the car business to be a tech company, and they are facing a lot of competition now in EVs, much different from 10 years ago.

Tesla was upgraded today with 60% upside based on their new supercomputer, Dojo: Has been very volatile the past year, so manage your risk and position accordingly. Don't get intoxicated by the extreme price moves up. The upgrade is based on the success of self-driving cars and taxis, but we've heard this before and we don't see that trend today.

He's bought puts on Tesla. He won't short it, but Tesla faces a lot more competition. Witness them cutting prices by 25%. It's highly capex business. It's overvalued. 21% of sales come from China whose own EV companies are killing it. It's crazy to buy Tesla at these levels.

He loves Elon Musk, but the chart shows a strong uptrend, then downtrend, now rebuilding. Not a gentle chart, with lots of swings. It's approaching its trendline, so sell, because it has a history of ugly pullbacks if it does

Shares are up 9% this week. In a given week, Tesla will move much further than Apple or Microsoft as yields come down and investors buy big tech, because of algorithmic trading.

Amazing company, valuations are incredible. Hugely tricky, lots of potential downside. He reduced his already-small position. In an uptrend, struggling, will take a lot to move it up. High expectations. Avoid right now until $200. If it goes down to $200 with a lot of momentum, you don't want to be in the way of that freight train.

There's a lot of bad news about their price cuts that's hurting the stock. There's no sign they will stop these cuts nor have they said they will stop cutting costs. Also, if they keep cutting prices, they won't make their earnings estimates.

He targets $278. Buy for growth or income using calls and puts.

It's been lacklustre vs. the market. He sees a brief bounce, then decline to Oct. 6, then it will rally again. Don't sell, but trade at the end of the upside phase.

Is excited about Wednesday's earnings report, looking for a big rise in revenues. Shares have been on a tear. Treat this like a commodity stock--volatile. China will be positive and there's already momentum in this stock. He expects shares to top $300.

It is a totally different paradigm in relation to the rest of the auto industry with a mulitple much much higher than the traditional one. Too speculative and expensive.

Remains the king of EVs with 60% of market share in first half 2023 though down 10%, because overall EV sales are up so much that it's hard to meet overall demand. Sales are up 30% YOY. Just released better than expected Q2 deliveries and shares soared. Stock is up 119% YTD, which makes it hard to buy now. Take profits.

Congratulations for the profit. You made 11% on the call and 11% on the stock. Do not buy back the calls at a loss. Let the call expire.