Behind the Veil: Is Tesla's Stock Value Engineered, Not Earned?
Allegations of Options Manipulation Supporting Tesla's Valuation
A recent assertion by GLJ Research analyst Gordon Johnson suggests that Tesla's stock, trading under the ticker TSLA, may be experiencing artificial support through manipulative options market activities. Johnson posited that despite a barrage of negative news and fundamental challenges, the stock's stability indicates aggressive call option buying. This phenomenon, he argues, diverts attention from the company's real-world performance metrics.
Options Market Indicators Point to Unusual Bullishness
Further supporting the manipulation theory, Johnson highlighted a significant drop in Tesla's put-to-call ratio, which plummeted from 0.85x to 0.67x in a single trading session. This sharp decline signals a marked increase in bullish options activity. Despite this intense call buying, Tesla's stock closed Friday down by 3.50% at $333.87. Current options metrics reveal a volume ratio of 0.61, indicating a clear preference for call options over puts, with implied volatility surpassing historical trends.
Consumer Skepticism Surrounds Tesla's FSD Technology
Adding to the company's challenges, a survey involving 8,000 U.S. consumers revealed widespread distrust in Tesla's Full Self-Driving (FSD) technology. Nearly half of the respondents believe FSD should be outlawed. The survey also showed a strong preference, with 70% of participants, for autonomous vehicles that utilize both LiDAR and cameras, in stark contrast to Tesla's vision-only approach, which garnered support from only 3% of those surveyed.
Tesla's Global Market Position Faces Erosion from Intensified Competition
Tesla's market presence in Europe witnessed a notable decline, with sales plummeting by 40.2% year-over-year in July, tallying only 8,837 units. Concurrently, the company's market share in the region decreased from 1.4% to 0.8%. This downturn occurred as Chinese electric vehicle manufacturer BYD Co. Ltd. experienced a substantial surge, growing its European sales by 225% to 13,503 units and capturing a 1.2% market share, underscoring the escalating competitive landscape.