Last Thursday, as US President Trump and Tesla CEO Musk completely "tore their faces apart" on social media platforms, Tesla's stock price plummeted by more than 14%, and its market value evaporated by US $152 billion (about 1,092.2 billion yuan), the largest one-day drop in history.
However, this decline failed to last. As of the close of U.S. stocks on Friday, Tesla's stock price rebounded 3.67% that day.
Wall Street bosses also believe that this "storm" will soon pass,The "Tema break" won't have a long-term impact on Tesla's business, including its self-driving taxi ambitions.
Morningstar analyst Seth Goldstein said, "The relationship between Musk and Trump has an impact on Tesla's stock and investor sentiment, but in terms of Tesla's actual business impact, I never think Trump's election is positive or negative for Tesla."
"And because of that, the current feud between Trump and Musk, I don't think it has any positive or negative impact on Tesla either," he added.
Goldstein further explained that although losing Trump's favor may have some implications in the short term, President Trump has made it clear that he will cut subsidies for electric vehicles, not only for Tesla, but for all electric vehicles. Manufacturers have the "most negative" impact.
Morgan Stanley analyst Adam Jonas wrote in a report last Friday,Musk's feud with Trump won't affect "the long-term factors driving the value of (Tesla's) stock."
"AI leadership, autonomy/robotics, manufacturing, supply chain restructuring, renewable energy, critical infrastructure … Tesla still holds many valuable cards in our hands that are largely apolitical," he wrote.
Robotaxi will not be affected
As for Tesla's upcoming self-driving taxi (Robotaxi) launch in Austin on June 12, Musk said it will unlock trillions of dollars in market value for his company. Analysts believe that,There is no reason to believe that these people (the Trump administration) want to hinder progress there.
Gene Munster, a well-known technology analyst and managing partner of Deepwater Asset Management, wrote in the latest report, "I think there is little good in the White House hindering (corporate) autonomy."
"Autonomy is at the heart of artificial intelligence, and if the United States wants to be a global leader in artificial intelligence, it must first become a leader in physical artificial intelligence. All in all,I expect that cooler heads will prevail and the federal government will continue to support the development of these services."He added.
Goldstein also said that he didn't think the government would take many measures to hinder the development of Tesla robot taxis. The Department of Transportation is reviewing federal standards for self-driving vehicle safety, he said.
He said, "In theory, if Trump wants to see Musk face retaliation and target Tesla, his government can require self-driving cars to be equipped with lidar in order to get federal approval, but I don't think they will. Get that detailed rules."
"I think if Trump really wanted to hurt Elon, he could more easily target SpaceX by cutting contracts instead of making some really weird, subtle policies," he added.
For investors who are worried during this period, they can consider using the collar strategy to make appropriate hedging.
What exactly is the collar strategy?
To protect the downside risk of stocks, there is a strategy of buying put options (Protective Put), and to reduce the cost of holding stocks, you can sell Covered Call options (Covered Call). In order to take care of both, Collar options-this new strategy was born.
The operation method of collar option is to buy an out-of-the-money put option as insurance on the premise of holding stocks, and at the same time sell an out-of-the-money call option to pay the cost of insurance. This is equivalent to putting a Collar on the stock, and the income of the stock is locked in it, hence the name of the Collar option. The collar option is in fact a combination of Protective Put and Covered Call, which limits the risk of downside at the expense of removing some of the possibility of upside profit.
Collar options are available when traders have a bullish position in the underlying market and want to protect the position from market downside shocks. When the full cost of a put option is covered by selling a call option, it is called a zero-cost collar strategy.
Tesla Collar Options Strategy Case
Suppose an investor holds 100 shares of Tesla with a current price of $295. The investor is not sure how the price will change in the near future and wants to buy an insurance policy for his position. You can use the collar strategy.
In the first step, investors can sell a call option with an exercise price of $360 and an expiration date of July 11 at a price of $5.8, earning $580.
In the second step, you can also buy a put option with an exercise price of $235 and an expiration date of July 11 at a price of $5.23 (costing $523).
Strategy structure: Collar strategy
Spot position:With 100 shares of TSLA, the current market cap is $29,500.
Sell a Call option (Call):
Strike price: $360
Due: July 11, 2024
Revenue: $5.8 × 100 = $580
Buy a Put option (Put):
Strike price: $235
Due: July 11, 2024
Cost: $5.23 × 100 = $523
Total initial cash flow:
Revenue: $580 (Call)
Expenditure: $523 (Put)
Net income:+ $57 (slightly profitable)
Maturity profit and loss analysis (based on price per share):
If TSLA ≥ $360:
The stock was called off and sold at $360, with a total income of $36,000;
Earnings = 36,000-29,500 (original stock value) + 57 (premium difference) =US $6,557
If $235 & lt; TSLA $360:
Neither Call nor Put is executed;
Profit/Loss = (Maturity Price-295) × 100 + 57
That is, it floats according to the current price, and the collar strategy does not limit the middle price range.
If TSLA ≤ $235:
Put was executed and the stock was sold at $235;
Gross revenue = 23,500 + 57 = $23,557;
Total loss = 29,500-23,557 =US $5,943
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