Tesla Stock Slides as Price Cuts Squeeze Margins

The EV giant is weighing on the Nasdaq today

Deputy Editor
Jul 20, 2023 at 10:37 AM
facebook X logo linkedin

Tesla Inc (NASDAQ:TSLA) is helping Netflix (NFLX) drag the Nasdaq today, after both tech names' lackluster second-quarter earnings reports. The electric vehicle (EV) giant posted strong results, including record revenue. However, operating margins fell due to price cuts, with CEO Elon Musk hinting at more price cuts to come. At last glance, TSLA was down 6.8% to trade at $271.37. 

At last check, four brokerages upped their Tesla price targets, the highest coming from Wedbush to $350 from $300. The stock's consensus 12-month price target of $223.27 is a 18.5% discount to its current perch, implying there's ample room for more revisions going forward.

Yesterday, TSLA rose to its highest level since September before moving lower to snap a six-day win streak. Today's gap lower has the equity back below former pressure at the $280 level, though its 20-day moving average still lingers below as support. Year-to-date, Tesla stock is up 125%. 

Typically popular amongst options traders regardless, TSLA is seeing double the average intraday volume today, with 827,000 calls and 427,000 puts exchanged so far. Expiring tomorrow, the July 300 call is the most active contract, with new positions being bought to open. 

Options are an attractive route, per TSLA's Schaeffer's Volatility Scorecard (SVS) that checks in at a 96 out of 100, meaning the stock has exceeded option traders' volatility expectations during the past year.



Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI