Stock that is very popular is basically always oversold. But Tesla has been beating analyst estimates most of the time and because they had fallen a bit in the recent selloff I thought it would be a nice target. Since a couple of months I see a lot of Tesla’s in the streets and they were not there one year ago. I hoped that some strong earnings for the start of this year would give the stock a nice push upward. So I bought some call options for May this year. At a high strike price $260. At that time it was trading around $210. So they were about $ 0,90. To make a long story short. Earnings came out (they were actually not bad but stock dropped to $185 and the options are now $ 0,01 So even when your strategy is ok it does not guarantee succes.
I found an article on Seeking Alpha about the earings: For the Q1 2014 period, Tesla reported revenues of $713.05 million, which beat analyst estimates for $699.10 million. On the bottom line, EPS came in at $0.12 per share. While this number beat analyst estimates by four cents, it may have been disappointing to those expecting a larger beat. After a huge beat in Q4, I figured that $0.15 to $0.20 would be doable, and I’m guessing many thought that range would be hit as well. This small beat is basically a repeat of the Q3 2013 quarter, where Tesla only beat by a penny and the stock dropped afterwards. For the quarter, Tesla delivered 6,457 vehicles, slightly ahead of the company’s guidance for 6,400.For those that read Bill Maurer’s earnings preview on Seeking Alpha Click here, this number was basically where he expected it to be.
And now it is: