Is Tesla A SCAM? – Options Trading with David Jaffee
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Is Tesla a SCAM?

Is Tesla a scam?

Tesla is definitely not a scam, however I believe that it's extremely overvalued. 

Tesla has a Rockstar CEO and if you look at companies, or products, that have a history of developing a cult-like following they almost always disappoint.

Bitcoin is currently trading more than fifty percent below its all-time high, a lot of NFTs have gotten crushed also.

Many other companies which have had celebrity CEOs, and which have also developed a cult-like following , have had a tendency to disappoint investors.

I believe that if you removed Elon Musk as the CEO of tesla then it'd probably be worth around $100 - $150 billion dollars, instead as of late July 2022 it's worth about six times that amount.

I believe that Tesla is a company with a very strong future, and despite it having a Rockstar CEO, or a cult-like following, and potentially being overpriced at this moment, I still think that there are ways that you can make significant profits from Tesla.

Selling a put option on Tesla with an expiration of about three to four weeks out and a strike price of about $600 is a great way for you to potentially profit from the recent pullback in Tesla.

Just about five or six months ago, Tesla was trading at about $1,100 so having the opportunity to purchase it at $600 would be a great opportunity.

Even if you're unable to acquire shares at $600 you'll still have the opportunity to collect money by selling premium, and because of Tesla's high implied volatility and high implied volatility rank there's a lot of available premium for you to collect.

Tesla Options Trading Strategy

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 and then for both of those positions you can go about three to six months out in duration.

In this situation you'll give yourself enough time to be right and then profit from the upside potential of the actual 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.

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Is Tesla a Buy?

So, is Tesla a buy?

It depends on whether the market continues to go down.

Tesla was trading over $1,200 just a few months ago, so selling puts and owning it below $600 seems like a solid long-term play.

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Is Tesla a good investment for 2022?

Long-run, it probably is.

But, make sure not to use too much leverage or else you may be forced to close the position at an inopportune time.

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Is Tesla a Scam (Conclusion)

No, Tesla is not a scam, but it is probably overvalued and you may experience significant price volatility in the stock in the future.

**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 August 8, Tesla is trading around $870 / share.

Did Tesla recently have a stock split?

No, it didn't.

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?

No. He has a big mouth and is a bit strange, but I believe he 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 Musk and TSLA are solid overall.

About the Author David Jaffee

I (David Jaffee) help people become consistently profitable traders while minimizing risk. I graduated from an Ivy League University and worked at some of Wall Street's most successful investment banks. Subscribe to my YouTube channel for valuable videos - BestStockStrategy YouTube Channel​. Finally, if you're looking to Land a Finance Job, then I've put together the best step-by-step course at My personal website is

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