Tuttle: TSLA More A.I. Than EVs, Expect "Much Less Choppy" 2026

Core Viewpoint - Tesla's stock has experienced significant volatility, with a 12% increase this year, but a dramatic drop of over 50% after reaching an all-time high, followed by a recovery of more than 110% since its April low [1]. Group 1: Stock Performance - Tesla shares have seen a roller coaster ride, dropping over 50% in four months after hitting an all-time high, then recovering more than 110% since April [1]. - The stock has gained 30% since mid-September, indicating a positive trend in recent months [1]. Group 2: Valuation and Market Perception - Matthew Tuttle, CEO and CIO at Tuttle Capital Management, commented on Tesla's market capitalization being "ridiculously overvalued" and raised concerns about share dilution [2]. - Tuttle suggests that viewing Tesla solely as an EV company may overlook its potential in physical AI, indicating a broader technological perspective [4][5]. - The comparison to Amazon's early days highlights the potential for Tesla to evolve beyond its current market perception [6]. Group 3: Future Expectations - Expectations for Tesla in 2026 include a potentially less volatile year for shareholders, with a focus on the company's core operations rather than external distractions [9]. - The stock is currently viewed positively, with Tuttle expressing confidence in its future performance, contingent on market conditions [10]. Group 4: Trading Strategy - A bullish trading strategy was proposed, involving a long call diagonal spread with a focus on the $480 level, indicating a positive short-term outlook [15][16]. - The trade structure involves selling a December call option and buying a January call option, with a break-even point at $478 [17].