Weak European sales and a spat with President Donald Trump are weighing on TSLA
Tesla Inc (NASDAQ:TSLA) stock is dragging Wall Street, last seen 4.1% lower to trade at $294.81. The electric vehicle (EV) giant reported an over 60% sales drop in Sweden and Denmark, while domestically CEO Elon Musk and President Donald Trump are again locking horns. Musk called Trump's megabill “utterly insane and destructive” on X, while Trump threatened to examine Musk's subsidies.
The exchange pushed TSLA to a three-week low right out of the gate. Shares are down 26.7% this year, and are now testing their 80-day moving average, a trendline breached only once in the last two months.
Options traders are leaning into puts. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OM X PHLX (PHLX), TSLA's 10-day put/call volume ratio ranks in the 71st percentile of annual readings. Echoing this, the security's Schaeffer's put/call open interest ratio (SOIR) of 1.09 stands in the 91st percentile of readings from the past 12 months.
Premium is affordably priced, per the stock's Schaeffer's Volatility Index (SVI) of 54% that ranks in the 12th percentile of its annual range, implying that options players are pricing in lower-than-usual volatility expectations. Plus, the security's Schaeffer's Volatility Scorecard (SVS) sits at a 85 out of 100, it tended to exceed volatility expectations during the past year.