Option Trade 
Tesla Motors Inc (NASDAQ:TSLA) Calls 
Wednesday, 4th May, 2016

** OPTION TRADE: Buy the TSLA Jun 17 2016 255.000 call at approximately $6.00. Place a pre-determined sell at $12.00.

Note: No protective stop losses added -- but if you wish to do so make it $2.40.

by Ian Harvey

May 04, 2016

Tesla Motors Inc (NASDAQ: TSLA), an electric car-maker, will report its first-quarter results after the market close today, May 4. Analysts forecast a loss of 84 cents for the quarter, down from a loss of 36 cents during the same period last year.

Tesla’s attempt to break into the auto industry has not been an easy feat, and the company continues to operate at a loss. However, the company’s sales have been rising, and it is getting closer to being able to use its scale to its advantage, and some analysts expect the company will start to show a profit soon.

Tesla’s new car sales are up 57% over the last twelve months, and first-quarter deliveries were up 48% versus the same period last year.

Given the first-quarter deliveries, expect a solid report.

The stock is currently up a modest 1.8% on the year.

Analysts expect Tesla Motors to report revenue of $1.59B and EPS of -$0.52. Other key highlights will be an update on Model 3 reservations and discussion on the ramp up of Model X production. A capital raise from the EV automaker could steal the show if the amount catches investors off-guard.

Stifel Nicolaus is comfortable sticking with its bullish view on Tesla ahead of today's report. Analyst James Albertine thinks 2016 delivery guidance will be maintained at a level of 80K to 90K units. He also expects a higher mix of Model X vehicles in Tesla's sales tally to help drive Q1 results close to consensus. A capital raise is seen being pushed further down the road, but Stifel hopes to hear from management sooner rather than later on the progress of the Gigafactory.

One Tesla analyst, who is quite bullish on the stock with a $325 price target, basically said on Tuesday that no surprises are coming. James Albertine expects the company to reiterate yearly delivery guidance, reiterate its automotive gross margin forecast, reiterate its cash flow / no capital raise plans, and mostly keep its expense forecast for the year in check.

Also, the Model 3 hype is still running strong. Not to mention this week's news that the Model X's biodefense air-filtering system works.

There's also the chance that Elon Musk pulls out something new today.

Tesla Motors Inc was upgraded by equities research analysts at Vetr from a “sell” rating to a “hold” rating in a note issued to investors on Monday. The brokerage currently has a $238.61 price target on the electric vehicle producer’s stock.

Also, several other equities research analysts have recently commented on the company.

• Global Equities Research reiterated a “buy” rating and issued a $385.00 price objective on shares of Tesla Motors in a report on Monday, January 4th.

• Morgan Stanley reiterated a “buy” rating and issued a $450.00 price objective on shares of Tesla Motors in a report on Thursday, January 14th.

• Dougherty & Co reiterated a “buy” rating and issued a $355.00 price objective on shares of Tesla Motors in a report on Wednesday, February 3rd.

• Stifel Nicolaus reiterated a “buy” rating and issued a $325.00 price objective on shares of Tesla Motors in a report on Monday, February 8th.

• Finally, Credit Suisse reiterated a “buy” rating on shares of Tesla Motors in a report on Thursday, February 11th.

Eight investment analysts have rated the stock with a sell rating, seven have given a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the company. The company has a consensus rating of “Hold” and a consensus price target of $271.02.

Harvey’s Options Volatility Indicator

Therefore, based on the facts above, and Harvey’s Options Volatility Indicator, the following option trade is recommended…..

** OPTION TRADE: Buy the TSLA Jun 17 2016 255.000 call at approximately $6.00. Place a pre-determined sell at $12.00.

Note: No protective stop losses added -- but if you wish to do so make it $2.40.

”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.



Back to Stock Options Made Easy Home Page

Back to Option Trades from Option Trade – Tesla Motors Inc (NASDAQ:TSLA) Calls - Wednesday, 4th May, 2016



Get all the latest options news from
STOCK OPTIONS MADE EASY with our FREE newsletter


Enter Your Email Address

Enter Your First Name






Your first paragraph ...



Search Stock Options
Made Easy



Enjoy Relaxed or Fast-Paced Trading? Choose your Membership Style...

Whether you prefer to take a laid-back approach to your trading,

or to charge ahead in your options trading,

 Stock Options Made Easy Armchair Trader and Cut-to-the-Chase Trader Memberships put everything you need to succeed at your fingertips for just  $39 or $79 per month.







Subscribe to our FREE
newsletter for all the latest options news!


Enter Your Email Address

Enter Your First Name