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Tesla's Earnings Might Be the Least Interesting Thing on the Call

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Breakdown

0:00lesson

Tesla earnings and market expectations

  • Earnings expected at 45 cents a share
  • Analysts cut estimates 18% in 3 months
  • Tesla sold more cars but earnings shrink
  • Options price 7.45% move for week
  • Market charges 25% more than average
2:27lesson

Options math and market expectations

  • 7.5% expected move on earnings
  • Market prices in plot twist
  • High expectations for tech names
  • Bullish position in November
  • Stock down 19% year to date
4:18lesson

Potential SpaceX merger analysis

  • SpaceX could buy Tesla
  • SpaceX at $2 trillion, Tesla at $1.5 trillion
  • Merger of equals unlikely
  • Buyout price could be $3 trillion
  • Options don't signal merger
6:18lesson

Roadster and market implications

  • Roadster flight test successful
  • Production expected 2028
  • Options price $530 upside
  • Downside priced at $170
  • Hype around Roadster and SpaceX
8:00lesson

Focus on earnings and market range

  • Earnings price 7.5% move
  • Stock range 335 to 389
  • No extreme volatility
  • Options market focused on earnings
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