Core Viewpoint - Tesla's stock presents a compelling investment opportunity through the strategy of selling Put Options, offering a potential yield of over 12% with a 40% margin of safety [1][2][10]. Group 1: Investment Strategy - Selling a long-dated Put option with a strike price of $200 allows investors to collect approximately $1,704 in premium per contract, equating to an 8.5% yield on the cash set aside [2][5]. - If Tesla's stock remains above $200 by June 18, 2026, the investor retains the premium, resulting in an effective income of 8.5% over 400 days [5]. - Should Tesla's stock fall below $200, the effective cost basis for acquiring shares would be $183, representing a 47% discount from the current price [5][13]. Group 2: Company Performance and Market Position - Tesla's revenue has more than tripled over the past four years, exceeding $95 billion in the last 12 months, despite competitive pressures from companies like BYD [6]. - The company remains profitable and cash flow positive, even amid margin compression, due to investments in production automation and expansion into the robotaxi market [6]. - Tesla's long-term optionalities, including Full Self-Driving (FSD), the Dojo supercomputer, and its energy business, could significantly enhance intrinsic value over time [7]. Group 3: Market Volatility and Risk Management - Tesla is characterized by high volatility, which contributes to the attractive yield from options trading; historical price bottoms have risen over time, indicating a potential for recovery [8][9]. - The stock's historical lows were $102 in 2022, $140 in 2024, and $215 in 2025, suggesting that a strike price of $200 or $165 provides a favorable margin of safety for investors [9]. - The investment strategy is supported by large institutions, indicating reliability for long-term investors who are comfortable with Tesla's market leadership in clean energy [3][12].

Tesla has denied a report that its board sought to replace Elon Musk as its chief executive amid a backlash against his rightwing politics and declining car sales.Robyn Denholm, the chair of the board at the electric carmaker, said in a statement on Tesla’s social media account on X: “Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company.“This is absolutely false (and this was communicated to the media before ...