Tesla Stock Buzzing After Latest SEC Subpoena

Last week was TSLA's best since 2013

Managing Editor
Nov 2, 2018 at 2:22 PM
facebook twitter linkedin


Tesla Inc (NASDAQ:TSLA) confirmed today that the Securities and Exchange Commission (SEC) has issued subpoenas investigating production projections for its Model 3 vehicle. Should government enforcement occur, Tesla has said it could have “material adverse impact on our business.”

This isn't the first time the Feds and Tesla have battled it out. Elon Musk, the company's controversial CEO, was in hot water earlier in the fall for his famous tweet about "taking Tesla private." At last check, TSLA was up 0.5% at $346.40, but has spent most of the day in the red, sinking as far as $340.91 back around noon. 

Overall, TSLA stock has had a volatile year, but has still managed to tack on 10% year-to-date. While the shares did pull back in early-October at the start of the broader market sell-off, they seem to have found a floor at the $250 level, an area that contained a sell-off back in late March. What's more, TSLA is fresh off its best week since May 2013 after turning in an outstanding quarterly report on Oct. 24.  

Daily Stock Chart TSLA

Short interest fell by 1.8% in the last two reporting periods to 34.06 million shares, and represents a whopping 27% of TSLA's total available float. And in the options pits, near-term speculators have been more put-skewed than normal. This is according to Tesla's Schaeffer's put/call open interest ratio (SOIR) of 1.92, which ranks in the 84th annual percentile.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners