stocks
Tesla stock true believers could be losing faith
Scott Nations deciphers what the options market is telling us now about the cult stock.
TL;DR
- Tesla (TSLA) shareholders have enthusiastically bought shares despite persistently high valuations.
- Options market sentiment has flipped, with protective puts becoming more expensive than calls, signaling increased perceived downside risk.
- The RiskDex metric, measuring 30-day risk perception, has reached its highest level in three years for TSLA.
- Factors contributing to this shift include the retirement of the Model S, expiration of EV tax credits, and skepticism over autonomous driving promises.
- The company's soaring valuation, reduced policy support, and waning EV enthusiasm are creating a new narrative for Tesla.