Welcome to the Extreme Investor Network blog, where we provide unique insights and valuable information on the world of investing. Today, we are discussing the recent developments at Tesla’s annual meeting and the implications for investors.
Elon Musk, the CEO of Tesla, recently had his $56 billion pay package reinstated by shareholders after it was voided earlier this year by a Delaware judge. This decision led to the company changing its state of incorporation from Delaware to Texas. With this issue now behind them, I am bullish on Tesla’s future prospects.
Tesla has been a rollercoaster ride for investors, with Musk’s involvement in multiple companies adding to the volatility. Despite the recent endorsement from Cathie Wood of ARK Invest predicting a value of $2,600 per share by 2029, Tesla has been a laggard this year, down 26% year-to-date. However, with the Musk commitment uncertainty now resolved, I believe the stock has the potential to bounce back.
When emotions run high in a stock like Tesla, it’s important to rely on technical analysis to guide your trades. Looking at the 50-day and 200-day moving averages, I see $170 as short-term support and $209 as a potential resistance level. To take advantage of this, I recently initiated a call spread trade on Tesla, buying the $190 Call and selling the $215 Call.
This call spread trade allows me to profit from potential price movements in Tesla while managing my risk. Tesla has a history of volatility around key milestones, so it’s important to stay nimble and adapt to changing market conditions.
As always, it’s crucial to conduct your own research and consult with a financial advisor before making any investment decisions. The information provided here is for informational purposes only and should not be construed as financial advice. Visit our website for the full disclaimer and to stay updated on the latest investment insights. Thank you for reading, and happy investing!