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Bullish Tesla Options Explode in Value

After a brutal 2022, Tesla’s stock has roared higher, making it the fourth-best-performing company in the S&P 500 through Friday.

Tesla shares are headed for their best one-day percentage gain since March after the electric-vehicle maker posted record quarterly sales.

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Factset Chart on Tesla

Tesla’s (TSLA) stock rose about 6%, boosting shares of other electric-vehicle makers. Rivian Automotive climbed over 12%, putting it on track for its largest percentage increase since November, after reporting its own strong deliveries. Lucid Group gained 5%.

Chinese EV makers also rose. Shares of BYD rose more than 4% in Hong Kong after the Berkshire Hathaway-backed company reported that June sales nearly doubled from the year before. U.S.-traded shares of Chinese EV makers NIO, Li Auto and XPeng also all rose.

Asian stocks were broadly higher Monday amid optimism over Treasury Secretary Janet Yellen’s coming trip to China.

Tesla said Sunday that global deliveries surged 83% to 466,000 vehicles in the second quarter, boosted by sharp price cuts. Over the past year, Tesla has gone from having waiting lists for many of its vehicles to accumulating inventory, spurring Elon Musk to slash prices to prioritize sales growth at the expense of near-term profitability.

Investors will get a better understanding of how that has affected profitability on July 19, when the company reports second-quarter financial results. Tesla reported a 24% decline in profit in the first quarter, sending shares down nearly 10% in the following session.


Image: Tesla