On April 24, we said:
There are two key catalysts that could force Tesla’s (SYM: TSLA) stock higher.
One, Elon Musk just said his time at DOGE will drop significantly – and that he would focus more on Tesla again.
Two, analysts at Wedbush just raised its price target on TSLA to $350 with an outperform rating, citing Musk’s recommitment to Tesla. Three, it’s technically oversold. After dropping from about $475 to a recent low of $225, TSLA is now consolidating at $237.97. From here, we’d like to see TSLA initially retest $350 a share.
At the time, TSLA traded at around $255.
Today, the electric vehicle stock is up to $289.70 and could easily retest $300 shortly. Longer term, we’d like to see it retest $360, which we believe is doable.
Cheaper Alternatives to Tesla Stock
If Tesla’s current price tag is a bit too high for you, there are two other ways to trade its momentum. One way is to buy the Direxion Daily TSLA Bull 2x Shares (SYM: TSLL), which trades at around $10.75 at the moment.
With an expense ratio of 0.95%, TSLL seeks 200% daily leveraged investment results and thus will have an increase of volatility relative to the underlying TSLA performance itself.
It also pays a quarterly dividend. In fact, on April 1, it paid out a dividend of $0.08448.
There’s also the YieldMax TSLA Option Income Strategy ETF (SYM: TSLY).
With an expense ratio of just under 1%, the YieldMax TSLA Option Income Strategy ETF (TSLY) yields about 3.87% with a distribution rate of 104.35%. It also last traded at $8.32. Plus, its dividends are also paid out monthly, with its last one ($0.6598) paid out on April 21.
In addition, while TSLY doesn’t directly invest in Microsoft, it does generate monthly income by selling/writing call options on TSLA.
To date, the TSLY chart is a bit ugly. However, with Tesla stock on the mend and pushing higher, the TSLY ETF is likely to follow. Last trading at $8.32, which puts it above double-top resistance, we’d like to see it initially retest $12.50 a share.
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Shocking Elon Move: Bigger than DOGE?
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Written by Ian Cooper