Bearish Options Play on Tesla Unveiled by TSLA Skeptic

Larry Ramer

Thu, Apr 10, 2025, 10:10 AM 2 min read

OptionsPlay expert Tony Zhang, who's precise pessimistic astir Tesla (TSLA) and its stock, unveiled a bearish options play connected the sanction contiguous connected the Schwab Network.

Why Zhang Is Bearish connected TSLA Stock

Tesla's valuation is "incredibly rich," and the automaker is losing marketplace stock to its Chinese competitors successful Europe, Asia, and the U.S., Zhang stated.

Moreover, the automaker is apt to beryllium wounded by the deterioration of user assurance successful the U.S., portion the show of its shares volition astir apt beryllium undermined by the banal market's weakness, Zhang contended.

Also importantly, the company's Q1 deliveries came successful importantly beneath expectations, the expert noted.

Zhang's Bearish Options Trade

The expert recommended that traders bargain May 2 puts with a $255 onslaught terms and merchantability May 2 puts with a $210 onslaught price. Traders who usage this strategy volition wage nett premiums of $15 per spread.

The Recent Price Action of TSLA Stock

In the past month, the shares person fallen 2%, and they are down 38% successful the past 3 months. Over the past year, however, they person jumped 41%.

While we admit the imaginable of TSLA, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. There is an AI banal that went up since the opening of 2025, portion fashionable AI stocks mislaid astir 25%. If you are looking for an AI banal that is much promising than TSLA but that trades astatine little than 5 times its earnings, cheque retired our study astir this cheapest AI stock.