$Goldman Sachs(GS)$ is at it again, and while it's not common to directly advise people to buy options, the timing of the appearance is common, with its analysts recommending buying calls ahead of $Tesla Motors(TSLA)$ Q3 earnings report and the Oct. 10 Robotaxi Event.
It even mentions specific options:Buy TSLA Oct-24 $255 calls
Reasons are clear
Q3 results will be heavy on growth, with revenues expected to be up 4% sequentially and 6% year-on-year, driven by strength in China;
The event on October 10 is expected to showcase its fully autonomous driving technology and business prospects at the event;
Tesla may have a cost advantage in scale over other self-driving car competitors, given its volume in the consumer business, vertical integration, and narrower sensor suite
Tesla options are actively traded and now account for 17% of all options volume in $S&P 500(.SPX)$ once again outpacing $NVIDIA Corp(NVDA)$ (14%), which is also currently on the rise in expectations.
Of course, Goldman Sachs has a dark history that many investors scoff at, and there are a number of messages that are just plain bearish.
No-fence neural network technology won't solve the problem of fully automated driving in the large, chaotic cities where the cab business predominantly exists
Even if FSD is clearly viable in suburban and rural areas, Tesla is still a long way from getting regulatory approval
Robotaxi will have to charge a lot less than $UBER$ in order to get business, and profits may be negligible or even negative, while insurance costs will be prohibitively high.
The fact that Goldman Sachs is recommending it means that they themselves are Sell Calls.
Goldman Sachs itself was a victim of TSLA's fall from 420 to 100
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