Believe it or not, Musk's three major future promises: new models, autonomous driving, and Optimus!

Despite Tesla’s poor performance in revenue, deliveries, profit margins, and earnings per share (EPS) in Quarter 1 of 2024, Elon Musk’s positive outlook during the earnings call still caused the stock price to rise sharply in after-hours trading. Musk proposed forward-looking plans for new models, autonomous driving technology, and humanoid robot Optimus, which are expected to reshape the company’s development trajectory in the future. This article will delve into Musk’s three promises and analyze how to bottom fish Tesla’s stock price through option strategies when it seems to be bottoming out.

Musk’s three major promises:

1.New car models and autonomous driving: Musk announced that Tesla plans to launch new models by the end of 2024 or early 2025, which will use advanced autonomous driving technology. He emphasized that neural networks with cameras are the future of autonomous driving technology (FSD), which is rapidly developing and may soon be put into production.

2.Optimus humanoid robot: In terms of humanoid robot Optimus, Musk predicts that the product will be launched before the end of next year, and he firmly believes that Optimus will become one of Tesla’s largest businesses in the future.

3.Robotaxi concept: Musk also mentioned the Robotaxi taxi fleet that combines Uber and Airbnb models, indicating that Tesla’s expansion in the field of autonomous driving will further promote innovation in its business model.

Selection of US stock options platform

Whether you believe it or not, I believe it anyway, because Musk is a man who creates miracles. In addition to buying Tesla stocks, he can also buy options to invest in Tesla.

When choosing a stock investment platform, it is very important to understand the advantages of each platform. Below, I will explore the main advantages of traditional stock trading platforms and platforms that support the use of digital currency to invest in US stocks.

Traditional stock trading platform

For example, Interactive Brokers, Tiger Brokers, Futu Securities, and Charles Schwab

Advantages:

1.Comprehensive market access: These platforms typically offer trading of a variety of investment products, including stocks, bonds, options, foreign exchange, etc., to meet the needs of various investors.

2.Highly regulated: Strictly regulated by important financial regulatory agencies such as the US Securities and Exchange Commission (SEC) to ensure the safety of investors’ funds and the fairness of transactions.

3.Advanced trading tools: Provide professional trading software and platforms, including real-time data, chart analysis, investment strategy generation tools, etc., to help investors make scientific decisions.

4.Rich educational resources: Provide various educational resources and research reports to help investors continuously learn and understand market trends.

5.Client Server: Provide comprehensive customer support, including online, telephone, face-to-face consultation and other forms, to solve investors’ questions and issues.

Platform for investing in US stocks using digital currency

Such as BiyaPay

Advantages:

1.Innovative payment options: Supports transactions between traditional currencies and digital currencies (such as USDT), providing global users with more diverse fund deposit options.

2.Fast cross-border transactions: Using digital currency can achieve fast cross-border fund transfers, reducing the waiting time for traditional bank transfers.

3.Low transaction costs: In some cases, using digital currency for transactions may reduce transaction fees and transfer fees.

4.Attracting cryptocurrency investors: Provides a platform for investors interested in cryptocurrency to invest cryptoassets in traditional Financial Marekt.

5.Convenient fund management: By using digital currency, users can more easily manage and transfer funds between different investment platforms and assets.

6.BiyaPay provides the function of exchanging digital currency USDT into US dollars and withdrawing funds, which greatly facilitates the process of directly transferring funds to Jiaxin Securities. Thanks to the bank account provided by Jiaxin Securities for each successful account opening user, users can directly transfer funds from BiyaPay to their Jiaxin bank account, greatly simplifying the processing of funds. Although other securities firms do not support this direct deposit method, BiyaPay can still transfer funds to the bank account under the personal name of US stock investors. Investors can then transfer these funds to their own securities account for investment operations. BiyaPay’s flexible fund transfer method not only ensures the liquidity of funds, but also provides significant convenience for US stock investors.

Each of these platforms has its own characteristics and advantages, suitable for different types of investors. Traditional stock trading platforms are known for their comprehensive market access and strict regulatory environments, while platforms that use digital currency to invest in US stocks provide innovative ways of fund flow and low-cost cross-border trading options. Choosing the right platform will help investors achieve their investment goals more effectively.

Application of US stock option strategy:

1.Buy bullish options (Long Call): Investors who expect the stock price to rebound can consider buying bullish options. The cost of this strategy is relatively low, and the risk is limited to the purchase price of the option. It is recommended to choose options with a call-over price close to the current stock price, and pay attention to selecting an appropriate expiration time to capture the expected stock price increase.

2.Sell put options (Put Write): If investors are optimistic about Tesla’s long-term prospects and are willing to buy stocks when prices fall further, they can consider selling put options. This can reduce the actual cost of purchasing stocks by collecting premiums, but it also means that if the stock price falls sharply, they need to buy stocks at a price higher than the market.

3.Bullish options spread (Bull Call Spread): By simultaneously buying a lower-priced call-over bullish option and selling a higher-priced call-over bullish option, investors can reduce the cost of buying bullish options. This strategy limits the maximum loss and also limits the maximum profit, suitable for investors who have confidence in the expectation of rising stock prices but want to control risks.

Musk’s latest commitment reflects Tesla’s clear strategic perspective on future technology and market direction. Although the company faces challenges in the short term, its long-term growth potential still attracts market attention. By implementing a carefully designed option strategy, investors can take advantage of the potential rise in Tesla’s stock price while managing risks. Choosing the right option strategy requires a deep understanding of market dynamics and confidence in Tesla’s future development.

For investors who are optimistic about Tesla’s future prospects, using option strategies based on the company’s development plans and market reactions can seek higher returns while controlling investment risks. However, option investment has certain complexity and risks. It is recommended that investors fully understand the characteristics and risks of various option strategies before engaging in option trading, and allocate funds reasonably when appropriate to balance returns and risks.

Finally, with Tesla’s continued efforts in new product development and market expansion, as well as Musk’s positive outlook for the company’s future, Tesla stock provides a unique opportunity to observe and participate in the development of advanced technology. By using option strategies reasonably, investors can more effectively participate in this exciting journey and share the fruits of Tesla’s growth.