Wondering whether or not investing in Tesla is a scam?
Tesla is definitely not a scam.
Tesla has a Rockstar CEO who is now firmly entrenched in President Trump's Presidential Administration, potentially providing him with favorable business legislation.
I believe that if you removed Elon Musk as the CEO of Tesla then it'd probably be worth around $100 billion dollars, instead as of January 2025 it's worth about 14 times that amount.
While Tesla may be overpriced at the moment, there are still ways that you can make significant profits from Tesla (plus just because it may be overpriced doesn't mean that it won't continue to go up!).
Selling a put option on Tesla with an expiration of about three to four weeks out and a strike price of about $320 is a great way for you to potentially profit from the recent pullback in Tesla.
You can then use that option premium to finance a call debit spread (perhaps buying the $420 call and selling the $470); this structure provides you with a potential profit of $5,000 for every call debit spread.
The Best Tesla Options Trade
Using options is much more capital efficient than owning stock. And when you use portfolio margin, you're able to realize about 6x greater capital efficiency than when using stocks.
If you want to go synthetically long the stock while also realizing the capital efficiency of using options, instead of actually taking ownership of the stock, you can sell an at the money TSLA put option and buy an at the money Tesla call (choosing an expiration of about three to six months for both options).
In this situation you'll give yourself enough time to profit from the upside potential of the stock.
Is Tesla a Scam? Scotty Kilmer
Scotty Kilmer is a popular YouTuber and mechanic who has a good reputation.
He believes that Tesla makes garbage products.
I'm not sure he's right, but I like Scotty and respect him so if he says that TSLA makes garbage cars then it's definitely something to consider and not automatically dismiss.
Is Tesla a Buy Right Now?
So, is Tesla a buy? Personally, I would buy it at a price of around $350. You can also sell a put option with a strike price of $350 if you'd like to collect premium while possibly getting assigned at $350.
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Is Tesla a good investment for 2025?
Due to President Trump's Presidential win, I believe that Tesla is a buy as it will likely receive accommodating legislation to grow its business.
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Is Tesla a Scam (Conclusion)
No, Tesla is not a scam, in fact due to President Trump's victory, it's probably a buy.
**IMPORTANT** - This article is NOT investment advice. Trading options and / or investing in stocks carries risk. This article simply shares my thoughts and should never be considered investment advice.
Frequently Asked Questions (FAQs)
What is Tesla trading at?
As of January 2025, Tesla is trading around $380 / share.
What happens if Tesla stock price keeps going down?
If you believe that Tesla will continue to go down in price, then it would be wise to not buy it.
How Can I Learn More About Options Trading?
Should I Trade Options During a Bear Market?
Yes, if done correctly, then trading options will enhance your returns and allow you to beat the market.
Is Elon Musk a fraud?
If you examine the past of all billionaires, almost all of them have made mistakes and done "shady" things. It's important to look at their intentions, and I believe that Elon Musk has good intentions.
He doesn't seem like a bad person and he seems empathetic and genuine in his desire to help humanity.
Is Tesla bad for the environment?
Probably. Lithium mining is very bad for the environment and electricity production is still dirty. Plus, the batteries are extremely heavy and are rarely recycled.
So, overall, electric cars are probably just as bad, if not worse, than gas engines.
What Tesla scandals are there?
Tesla seems to overcharge their customers and limit the car ranges. Plus, regular mechanics cannot work on Tesla cars.
Plus, Elon Musk is oftentimes involved in a lot of distractions, most of which originate from his large ego.
Finally, Tesla cars are not good for the environment and they may be worse than internal combustion cars.
Even so, no one is perfect and I believe that Elon Musk has positive intentions (especially when it comes to protecting civil liberties).