I'm Buying Tesla Stock Call Options.

another day another two fud stories on

Tesla today elon's responded to one of

them and quite frankly the only one that

he should respond to because the first

ones like why do they even put this

effort together I was on the refinitiv

terminal today and I saw this headline

come through I'm like what is this and I

click on it it's these early Tesla Bulls

are giving up on the stock oh good lord

this is the kind of stuff that makes me

think we are at a sentiment Rock Bottom

for Tesla

but this is the story that we're going

to talk about as well as Elon musk's

response so this morning uh Laura

written a lot of negative pieces about

Tesla uh Laura has mentioned that uh

Elon Musk ordered that uh Nvidia chips

that were reserved by Tesla should be

sent to xai uh and X instead of Tesla

and so this is giving rise to the fears

that here we go again Elon and the

distractions of other comp companies the

distractions of X and Twitter

acquisition the acquisition the

distraction of xai everything is a

distraction versus what he should be

doing which is running Tesla which In

fairness people can operate in multiple

different businesses long as they're

fulfilling their duties in this case as

CEO of Tesla now Tesla Elon responded to

this my my first assumption mind you was

that uh this was probably because they

were they mentioned they're no longer ER

compute constrained uh that's Elon

mentioned this see I wrote this could be

why Elon diverted some of the 12K h100

shipments if true Tesla is no longer AI

training compute constrainted which is

good there are few things that are good

here number one Tesla's in a position

that's somewhat precarious from a cash

flow point of view although I do think

it's at a sentiment bottom you kind of

want to preserve a little bit of cash

flow so if you could take 12,000 chips

that are supposed to show up let's say

June and go hey we don't really need

those right now because we're training

compute constrained and we don't even

have the servers ready to set up for

them let's just send them over to X and

xai and Tesla can get the next batch or

maybe even Blackwell or whatever it is

then you don't so much have to worry

about it because as Elon said you're no

longer AI training Compu constraint and

I have to say FSD has gotten really good

at Tesla now of course at the same time

as FSD gets really good at Tesla yes

there is competition from China which

we're sheltered from thanks to really

government policies both from the Biden

Administration and the Trump

Administration back in the day or

potential future Trump Administration a

lot of barriers away from Chinese

vehicles but I don't I don't really like

investing in companies because the

government is trying to protect me from

their competitors I think that Tesla's

FSG is just at the front running of full

self-driving in America now don't get me

wrong other companies are going to do

their best to have their own FSD I just

heard the Ford CEO literally say they

are going to do their own software it's

because they realize that's where the

money is they're not going to license it

from Tesla that doesn't surprise me now

Tesla stock today still though it's

consolidating around the 175 level we

bounced on the

17416 pretty common but this is pretty

barcoding now what you've seen a lot of

days in the past as you get a rally into

the close here but no guarantees and any

kind of bullish short-term trades on

this could get totally burned but in the

longer run as Tesla having diverted some

of these X or h100s to XX a a big deal

probably not it's probably not going to

hold anything back from Full

self-driving it is though going to get a

lot of attention in the news today now

Elon did specifically reply and he says

Tesla has no place to send the Nvidia

chips to turn them on so they would have

just sat in the warehouse right but

Tesla would have also to pay for them

and you can bump your cash flow or it

could be less negative if you have

another company pay for them and

remember xai just got a big

multi-billion doll investment round they

raised like $6 billion okay well that's

interesting because 12,000 chips at

about $30,000 a piece is if I do this

math correctly it's $4.2 billion I

believe oh no I'm sorry it's only $420

million okay whatever point is you have

more Capital available fresh cash

available to go shop for those chips and

then set up server clusters or whatever

you want to do and now you don't have to

spend that money over at Tesla and if

you're not training compute restrained

anyway then what's the rush why spend

the money at this point so to me it

sounds like Inventory management but

people who don't like Tesla they're

going to look at this as a conflict of

interest and I get that like a lot of

people look at Elon and they're like too

many conflicts with other businesses and

this kind of feeds into that narrative

especially since when you look at the

article the article is based apparently

on emails that CNBC reviewed between

individuals at Invidia and again Elon

did not dispute that these emails have

taken place he just gave an alternate

explanation for why and that's usually

why stuff like this happens there's

usually a reason however it's still not

a good look for Elon and the leadup to

his Stockon plan what would a better

solution have been for Elon here well

maybe rather than Elon just deciding it

have a conversation with the board hey

we're not training compute constrainted

we don't really need the chips right now

it could benefit our free cash flow if

we let one of the Affiliated companies

or other companies take the order rather

than us and maybe those companies can

even pay Tesla like uh hey thanks for

letting us take your reservation fee or

whatever then the board votes on it they

sign off on it you document it boom and

then you could put out a statement ahead

of this Le in in CNBC and going hey just

FYI we think we're good so good with we

want to make an announcement we think

we're so set with training right now

what we've done is we've recognized some

revenue for giving up a reservation to

some Affiliated companies the board

approved this the board voted on this

and we actually think it's a sign that

we're so close on full self- driving on

Tesla that it's actually bullish now

maybe I'm bias I mean I I don't have as

large of a position in exposure to Tesla

as I used to have uh I I used to have a

substantially larger position but I'm

exposed to Tesla I've just

Diversified and that's because in this

environment I think it's going to take a

whole lot longer for rates to come down

than we really want to believe I made a

video which you should watch this

morning on uh how long it took inflation

to come down between uh 8 uh 1990 to

1999 and how much it came down you

should watch that video it a really good

video on the channel this morning uh

I'll get the title for you so you can

just search the title uh but it's a

really good video and it talks about the

ECB and the implications for potential

investment opportunities in America as

well for raid cuts and uh yeah central

bank rate Cuts start this week it's a

reference to the ECB but it's it's uh

you know what's what's being priced in

right now and if you're not aware of it

and its implications for America watch

that video central bank rate cuts to

start this

week but the time it takes for those

rates to come down I think unfortunately

will be a net negative for Tesla in the

long term because Tesla's just going to

have to keep financing those Buy buy

Downs now I do think those buy Downs are

going to lead to some pretty sick

delivery numbers so I'm pretty excited

about uh a a pop in deliveries from that

99% financing rate that you ended up

having uh and uh it's uh it's pretty

exciting uh but then again we can't

guarantee that the numbers are going to

be positive uh and they could still be

net net year-over-year

negative uh in fact that's uh what a lot

of analysts are thinking right now I

know Gary black is thinking the numbers

are going to be negative year-over-year

I think uh Tesla let's see here Troy

posted on his public post here Tesla

sales in Europe have been fairly steady

ranging between 85 to 94k over the past

week this quarter is expected to be

clearly lower based on registration data

so far so still expecting that negative

sort of uh delivery uh and production

figure uh and uh the same is true for

lower than analyst estimates for uh

deliveries for the second quarter

probably by a lot of estimates trending

somewhere between 10 to 15% below uh

expectations of uh where things might go

so we'll see we'll see what happens on

the day I think on the day it's going to

be the same thing where you're just

consolidation until the end of the day

and you're sort of hoping for a rally

into the close no guarantees but that's

my expectation uh and then as far as uh

the longer term for

Tesla it's an interest rate sensitive

play so you boy you got to really have

uh like Diamond Balls we like to say to

to hold on for the long term but I think

uh once we get this Catalyst over of the

stock comp plan whether it passes or not

I kind of think it won't but if it does

great bullish if it doesn't pass fine

they'll come up with a new plan there'll

be another solution that'll be put up

for a vote so uh that's my thesis and

I'm sticking to it but that's my take on

Tesla today thanks so much for watching

we'll see you in the next one goodbye

not advertise these things that you told

us here I feel like nobody else knows

about this we'll we'll try a little

advertising and see how it goes

congratulations man you have done so

much people love you people look up to

you Kevin P financial analyst and

YouTuber meet Kevin always great to get

your

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