Heavy Tesla Call Options Volume Highlights TSLA Stock's Value

Core Viewpoint - The significant volume of out-of-the-money call options in Tesla, Inc. (TSLA) indicates strong investor confidence in the stock's potential value, with a target price suggested to be over $501 per share based on recent analyses [1][3]. Summary by Sections Stock Performance - TSLA is currently trading at $447.00, down from a recent peak of $468.37 on November 3, following the release of the Q3 shareholder deck on October 22 [1]. Options Activity - There has been heavy trading in TSLA call options, with over 33,500 contracts for the $480.00 strike price expiring on December 5, 2025, indicating bullish sentiment among investors [5][7]. - The premium for these call options was $16.60, suggesting that investors expect TSLA stock to rise to $496.60 for the options to gain intrinsic value, representing a potential increase of +11.0% from the current price [6][5]. Valuation Insights - Based on a 6% free cash flow (FCF) margin and projected revenue of $95.633 billion in 2026, TSLA's FCF is estimated to be $5.738 billion, leading to a valuation of $1.688 trillion, which is +13.5% higher than its current market value of $1.487 trillion [3]. - A revised price target for TSLA is calculated at $507, which is higher than previous estimates, further supporting the bullish outlook among investors [4]. Future Expectations - Investors in call options are optimistic about TSLA reaching the $507 price target sooner rather than later, with expectations of selling their options at higher prices if the stock continues to rise [7]. - If TSLA reaches $480 by November 20, the call option price could potentially increase to $21.80, indicating strong speculative interest [8].