LFG!
Option Witch | FCF Could Push TSLA Stock 37% Higher, Short OTM Puts for Income
Tesla Inc. will report its Q4 earnings this week on Jan 24 . The company could produce positive free cash flow , unique among EV makers. TSLA stock is at near-term lows and is worth a good deal more.I discussed this in my last Barchart article 3 weeks ago, “Tesla Stock Still Has at Least 24% Upside Based on Its Free Cash Flow.” I suggested that TSLA stock could be worth $318 per share with a market cap close to $1 trillion over the next year.Based on more recent numbers, I am revising my target price to $286.24 per share. However, that is still 35% over today's price.This is based on the company continuing to produce positive FCF, just as it did last quarter. It generated FCF equal to 3.4% of its quarterly revenue. In the prior year, its FCF margin was 3.87%. This makes Tesla the only North American company producing EVs that generates positive FCF from EV production.For example, the $180 strike price puts expiring on Feb. 9, 2024, which is 3 weeks from now, trade for $1.25 per contr
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