JimmyHua
04-10

$Tesla Motors(TSLA)$

I've been investing for 10+ years mostly index funds with some individual tech investments (call them bets) on the side, good track record albeit some terrible timings along the way. Ive never played with options until last week when I finally cracked and bought a TSLA Put.

Their target market has turned against them, Musk's new fan base is anti EV, all cybertrucks were being recalled, globally demand is cratering with Germany dropping by 76%, BYD is kicking ass and announced a 5 min charge battery, and in the US Teslas are being burned, graffitied or anonymised (badges being replaced ). Oh and then the FT article talking about 1.4bn red flag on their last earnings.

When I bought my put the share price had already dropped 40% from ATH but it's PE was still ~120 and share price in free fall.

The next day it rose by 7% then another 5%, then stayed flat when tech fell another 3%.

When I bought my put I did joke to my mates "a lot of people have lost a lot of money trying to short Tesla. I've always felt I've belonged to this gang" but quietly hoped it wouldn't play out that way.

Anyway the thing I'm confused by is who is buying the stock? I know it doesn't trade on fundamentals, but surely there's enough dire news out there for it to settle at a more normal PE. Is there enough money from Musk Fanboys out there to drive these price rises? Bitcoin bros? Do retail investors even form a big enough chunk of the stockholders to be doing this? are institutional.investors buying in still despite all the evidence that their sun run is over? Surely Cathy Wood has run out of funds to invest by now

Id love some critical analysis here - what am I missing?

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