by Ian Harvey
September 08, 2018
Tesla Inc. (NASDAQ:TSLA) keeps spiraling downwards due to the direct effect of Elon Musk and his unpredictable behavior. This is all very good for those astute traders that have been able to execute the trade that was suggested on August 30; getting into the trade at $5.80 and as of Friday, September 7, was up as high as $28.19, returning a potential profit of 386%.
…….from…… “Elon Musk’s Problems Affecting Tesla!”
The Trade Executed……..
Option trade to consider: Buy the TSLA SEPT 21 2018 275.000 PUT at approximately $5.80.
The Previous Details……..
Elon Musk’s problems continue to escalate! Tesla is being put at risk due to the behavior from Musk – this means 40,000 employees and investors are being affected badly and the situation could become much worse.
Previous articles explain much of the problems associated with Elon Musk and his association withTesla……
These articles already outline many of the problems that are being encountered due to Musk’s erratic and desperate behavior and the effect on Tesla’s share price.
Since the last article on August 9, the roller-coaster ride for Musk has continued with another tweet abruptly announcing that he had secured funding to take his electric car company private.
This was so incorrect, as soon after the tweet it was revealed money wasn’t locked down after all. And now, two weeks later the whole deal has been scrapped.
The Continuing Saga………
Now, prominent short-seller Andrew Left has sued Tesla Inc and its chief executive Elon Musk, saying Musk fraudulently engineered his since-abandoned plan to take Tesla private to “burn” investors betting that the electric car company’s stock price would fall.
Left, whose reports at Citron Research often push stock prices lower, said in his proposed class-action complaint on Thursday that Musk’s issuance of materially false and misleading information harmed short-sellers like himself, as well as those hoping that Tesla’s stock price would rise.
The shareholder lawsuit is one of at least seven targeting Musk since he on Aug. 7.
On top-of-this, Friday saw TESLA’s Elon Musk provoke another Twitterstorm by briefly smoking marijuana on a live web show with comedian Joe Rogan.
Musk spent two-and-a-half hours on a podcast late Thursday discussing everything from artificial intelligence and its impact on humankind to flame throwers and social media whilst sipping on whiskey.
Also, taking a puff from a joint — which Rogan said was a blend of tobacco and marijuana and legal in California — Musk said he “almost never” smoked.
Tesla was not immediately available for comment — but investors apparently weren’t impressed.
Shares of Tesla dropped 8.2 per cent in pre-market trading, to $258.40.
As well, the online incident follows turmoil at Tesla Inc. this week as the news that two senior executives have decided to leave the electric-car making company.
Chief Accounting Officer Dave Morton gave his notice on Tuesday that he was resigning less than a month into the job.
After Tesla’s stock plunged, it declined further after Gabrielle
Toledano, the head of human resources who’s been on a leave of absence, said
that she won’t re-join the company.
Losing a chief accounting officer so quickly at a time when the company’s finances are under pressure does not give good vibes. It gives the implication that the executive was uncomfortable with the situation or with putting his name on something.
The San Francisco office of the Securities and Exchange Commission is investigating Musk’s tweet about having “funding secured” as well as broader issues surrounding company disclosures about production goals with the midsize Model 3, which Tesla is counting on to drive up revenue and stabilize its finances. Shareholder lawsuits are also cropping up.
After declaring aggressive output goals for the new model, Tesla has struggled for the last 12 months to smooth out glitches and bottlenecks in its assembly process.
The company has problems, and it seems the board and investors need to start speaking up about how the company is being run.
There has been periodic talk of installing a No. 2 under Musk or a chief operating officer, but there doesn’t appear to be any concrete evidence of this occurring.
And investors have
remained on edge as the stock declines — it closed Friday at $263.24 — and Musk
continues to draw attention away from strategic priorities, often through
impulsive outbursts on Twitter.
So, for those traders that managed to execute the put option trade; a nice potential profit of 386% was to be made!
A GREAT TRADE!
FURTHER ACTION TO TAKE…….
Based on history so far it appears that Tesla stock is in free-fall due basically to Musk’s bizarre behavior – and there doesn’t seem to be any sign of this changing in the near future.
Therefore, Here Are A Couple of New Trades To Consider…..
Option trade to consider: Buy the TSLA OCT 19 2018 240.000 PUT at approximately $14.00.
Option trade to consider: Buy the TSLA OCT 19 2018 220.000 PUT at approximately $9.00.Some Strategies to Consider……
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