Welcome to Teslaland, a wonderful world where one buys Tesla stock frantically, drinking Guru Elon’s Kool Aid. A world where valuation is meaningless, where Bitcoin reigns supreme in anticipation of a trip to Mars. A world in which the possibility of slower growth is postponed, while competition intensifies. But getting rid of the perception of the value of a company is not easy, as it seems to depend so much on the experience one has of it. So why is Tesla’s valuation so frightening? The reasons for fearing it are similar to those that make us look for it: overturning the established codes of the rigid world of finance, which impose themselves as a limit, certainly vital, but restrictive. To bask in the illusion of endless growth. But let us return to earth. Because we believe it is not healthy to value a company 20 times its turnover and 1000 times its last results or 200 times those expected in two years if all goes well, even if it innovates and shakes up its sector. Because we believe it is not healthy that its leader Elon Musk has invested more than twice the totality of its first positive net result after 15 years of losses in a cryptocurrency and in only one time, in this case Bitcoin and around 30000 dollars / BTC in January 2021. Because we believe it is not healthy for this investment to correspond to about a quarter of its cash net of debts, cash obtained thanks to several capital increases and sales on the market from its fan club. Because we believe it is not healthy for him to use his notoriety and his Twitter account to incite people to follow him once his inordinate investment has been made. Because this investment in Bitcoin, a virtual currency that uses more energy than a G20 country, exceeds his research and development budget, which seems at odd with his proclaimed ambitions to save the planet. Could this transaction reflect a lack of imagination or a distance from operational reality? Could Musk’s new status as the richest man on the planet be inflating his ego so much that his behavior may soon be considered a risk for the company ? All the more so if Bitcoin simply began to return some of its recent gains. This investment is a signal in itself. The last straw that could break the camel’s back. The little chocolate after a festive meal that causes indigestion. Would it be time to short Tesla to take advantage of the calm and thus the recent drop in volatility before a probable storm? What we are going to do through a PUT, well out of the money, that is to say far from the current rates. Franck Morel and Tommy Douziech Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of MarketScreener. The information, charts, data, views, or comments provided by SURPERFORMANCE SAS are intended for investors who have the necessary knowledge and experience to understand and appreciate the information contained within. These items are disseminated for personal reference only. They do not constitute an offer or solicitation to buy or sell financial products or services, nor an investment advice. The use of the information disseminated takes place under the investor’s sole responsibility, without recourse against SURPERFORMANCE SAS. SURPERFORMANCE SAS will not be liable, whether in contract, in tort, under any warranty, for errors, omissions, improper investments, or adverse evolution of markets.
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