Splashing out $1 billion! Musk adds to his Tesla stake for the first time in five years—could this drive another surge for Tesla?

Five years later, Musk is out again!

According to a one-week SEC filing, Musk made a series of trades on September 12 to purchase approximately 2.57 million shares for each share between $371 and $396. $Tesla(TSLA.US)$ Stocks with a total value of about $1 billion.

This is the first large-scale increase in the open market since the purchase of Stocks of about $10 million in February 2020.

The analysis concluded that Musk, as Tesla's most important insider, was seen as a vote of confidence in the company's investment. By cash, this is the largest Buy in history.

By September 15, Tesla had gained nearly 20% in the last three Japanese Trades, overtaking other Technology stocks and big boards. What is the main reason behind such a strong uplift? What are the key factors driving Tesla's share price rally? How can I register as an investor?

What is the reason behind this surge?

Near-term benefits include the addition of Musk, Tesla obtains a license to test autonomous vehicles in Nevada; Tesla launches dynamic energy storage product Megapack 3 and Megablock system Model Y L in the top-selling Musk million dollar salary package.

Tesla CEO names, only Musk can lead AI and Robotics for the next 10 years, and the salary solution is possible for him to transfer to other leadership positions such as Chief Product Officer, including the process of finding new employees.

Let's see specifically:

— Musk Rising

Musk's nearly $1 billion investment is his biggest personal move on the public market in recent years, significantly different from his symbolic purchase of around $10 million in 2020.

Insider buying in this large-scale model, which investors read as a Bullish outlook for the company, stoked the market heat from a direct point of view.

It is worth noting that Musk did not give any other strategy to increase the shares. He said he hoped Tesla's stake of at least 20% would be effective in motivating investors or diving acquisitions during key periods of the company's shift towards AI and Robotics.

According to some market watchers, Tesla's share price has been hindered by the technical pattern of the ascending triangle in the wake of this upward momentum.

Tesla Obtains a License to Test Automated Driving Vehicles in Nevada

According to reports, Tesla has obtained approval from Nevada, USA to test Robotaxi services on public roads in the province, with the announcement driving a fourth quarter increase in its share price by about 6%. Fifth, further strengthening market sentiment has been gained by the media following the confirmation of this news from stakeholders in Nevada.

The stock performance reflected investors' strong expectations for Tesla's expansion in the areas of autonomous driving and artificial intelligence. The CEO of Tesla in Moscow said in November that the Optimus Robotics business aims to achieve 80% of the long-term value of the company, while Robotaxi services, which maximizes the development of innovation, continues to propel other smart technologies into the ecosystem.

Tesla Launches Dynamic Energy Saving Product Megapack 3 and Megablock System, Model Y L in Hot Sale

Tesla launched a new energy-saving product Megapack 3 and Megablock system last week, with the name reducing installation time and reducing construction costs. Tesla launched a long-wheelbase six-seat electric SUV in China — the Model Y L is a hot seller.

The Model Y L's strong momentum is significant for Tesla, which is in the fiercely competitive Chinese electric car market. With the grace period extended to November, the new model is expected to drive Tesla's quarterly sales, helping others stay competitive.

BeforeTesla's new growth point has been reached? Model Y L is the best selling car, with a new wheel boost in its share price”For a detailed analysis of the recent positive factors, interested fellow investors can take a look.

— Musk's “Trillion Pay Package”

Tesla's Board of Directors has determined Musk's plan of action. Tesla issued an unprecedented salary agreement to the CEO of Musk, valued at nearly $1 trillion, the largest senior executive pay settlement in U.S. corporate history.

The proposal is intended to inspire Musk to continue leading Tesla for years to come, setting a series of remarkable business standards, including expanding Tesla's Unmanned Rental Business, and increasing the Company's Market Cap from a current estimated $1 trillion to less than $8.5 trillion. The duration of the program is 10 years.

Morgan Stanley said that as Tesla delved into the AI business, Musk was hoping to own at least 25% of the company's shareholding in order to have more power in the company's control changes, and that the new approach would provide an incentive for this.

The solution to the most important signals is in the design of other salary structures. These goals include not only payment volume, automated driving software, and traditional Business Indicators, but also the remarkable growth of payments from Robot Robotics (Bots) and Adjusted EBITDA as core audit content.

It is worth noting that the solution includes a key provision that allows for alignment of target performance targets in the event of a major acquisition activity, which was interpreted by analysts as a synergy between Tesla and Musk, XAI, the human-intelligence company. Here at Morgan Stanley, the Salary Solution is a Good Deal for Tesla Shareholder. It is a Good Trade Trade, which combines Operations, Profits and Market Caps through the consolidation of Operations, Profits and Market Caps through the consolidation of Operating, Profits and Market Cap targets. Tightly combined to create a high level of equity with Musk's personal interest and Shareholder value.

Outside, according to recent news reports, Musk will conduct a technical evaluation of the AI5 chip design in the sixth round, and a meeting will be held next week on Intelligence/Autopilot Systems, Optimus Robotics, and Vehicle Production.

How can I bet as an investor?

In the near future, the Tesla share price has risen sharply, and investors continue to look at other bullish trends, which can be attributed to the multi-pronged products in the ETF market such as TSLL and TSLG. If you are looking for an alignment or viewing operation, you can refer to the reverse-type ETF, such as TSLQ and TSLS.

In terms of options, considering Tesla's recent strong upside momentum, high hidden volatility and a lot of market volatility, investors can choose the right options strategy platform based on their own risk underwriting skills and market views. How:

1. Strategy 1: Prepare for bullish options (Covered Call) — suitable for stable investors

Strategy book:

Reserve Bullish Options refers to investors holding symbolized Stock Stocks and selling the required number of Sells while holding the symbol Stock, taking interest in hedging, taking advantage of options, taking advantage of the risk of falling stocks or increasing profits. Tesla rose on September 15 and its share price was at a relative high. Selling bullish options can reduce the cost of holding positions through equity income while holding Stock Holding Positions and lowering the cost of holding positions through lower royalty income.

Let's see specifically:

Symbol: The reseller owns 100 Tesla Stock Stocks (the price is below $410).

Sell Bullish Options: Sell 1 Tesla for the October period, with a bullish option priced at $430 (CALLoption), and exercise at about $28/share (The instrument option will be adjusted according to the current options market price adjustment.

Strategy advantages:

Strengthening earnings: If Tesla's share price does not touch $430 in the run-up to October, investors can save all their equity and lower the price of Hold Positions (such as $400, Sell Rights at $28, Hold Positions cost down to $372).

Limited Risk: If the stock price rises above $430, investors need to Sell Stock Stocks at $430, and receive entitlement compensation and limited losses on the opportunity cost.

Precautions:

You need to have valid Tesla Stock Stocks to cover Bullish Stock Options (1 option (1 option options for 100 shares applies to 100 Stock Stocks).

If Tesla's share price rises significantly (such as $450), investors will lose gains of more than $430, and royalty income may partially compensate for this loss.

2. Strategy 2: Bull Call Spreads — Suitable for balanced investors

Strategy book:

A bullish spread strategy is a strategy that directs investors to buy bullish options that lower the warrant price while selling bullish options at the same time to limit the upside to lower the cost of equity. Tesla rose on September 15, with the market looking forward to a short-term upswing, while hedging higher volatility led equity capital gains, while maintaining some upside space through a spread strategy.

Let's see specifically:

Buy Bullish Options: Buy 1 Tesla dated October, with a Call Option priced at $410, with a payout bonus of $36.6/share.

Sell Bullish Options: Sold 1 Tesla at the end of October at the same time, the Call Option (Call Option) at the exercise price of US$28.62/share.

The price is 36.6-28.62=$7.98/share ($798 if Trade 100 Shares)

Strategy advantages:

Lower Cost: By Selling Bullish Options with Higher Execution Price, Stop Partly Buying Bullish Options to Reduce Bullish Risk.

Restricted risk: Stock price below $410, Loss on options purchased, Sold option proceeds in deposit, No rights required, Maximum loss is $798 (100 shares Price higher than $430, Purchase options gain, Options loss sold, Total income The stake is set at $12.02/ share.

Precautions:

Bullish options are required to hold both Buy and Sell at the same time, depending on the price of the stock.

If the Tesla stock price fluctuates in the range of $410-430, the profit from the options purchased (share price-410-7.98), the options sold are not exercised, the total income is (price-$417.98/share (if the share price is $420, the profit is $2.022/share).

3, strategy 3: Buy bullish options (Long Call) —suitable for motivated investors

Strategy book:

Buy Bullish options are the right for investors to pay the right to buy Symbol Stock Shares at the agreed price. Tesla rose on September 15, with the prospect of a short-term upswing in the market, enabling investors to reap unlimited upside gains by buying bullish options with limited rights costs.

Specific operations:

Buy Bullish Options: Buy 1 Tesla for October, with an exercise option (Call Option) at $420, with a payout bonus of about $32.35/share.

Strategy advantages:

Unlimited Gains: If Tesla's share price rises to $460 in the early October period, investors can buy Stock Stocks at $420, or Sell at $460, but Sell at $460, and gain (460-420--32.35 = $7.65/share value required Based on royalty adjustment, theoretically unlimited income.

Limited risk: If Tesla's share price does not go up or down, investors lose the maximum amount of paid-in royalties.

Precautions:

A higher royalty will be paid, and if the share price does not rise, the royalty will be lost.

Suitable for motivated investors who have a strong outlook on Tesla's short-term momentum.

However, it should be noted that Options Trading is risky and investors need to choose a strategy wisely based on their own risk, investment objectives and market environment.

Brian Wong Wong Zizheng

Futu investment strategy expert

CE: BBH085

(The author is a licensee of the Securities and Exchange Commission and its affiliates do not have any financial interest in the proposed issuer of shares)