Elon Musk of Tesla makes for some interesting news. Last Thursday after the market closed, the SEC had a conference that they were filing a lawsuit against Elon Musk for market manipulation with his Tweet on August 7th when he stated that he is considering taking the company private at $420/share. From that Tweet the stock shot up from 340 to 380 that afternoon. I said it when it happened that it doesn't make sense and he will have legal problems that will probably include jail time if it doesn't go through.
A couple of weeks later Musk Tweeted that he would not take the company private because so many people would prefer he did not. The stock went down to 252 and bounced to make it to 318. Once the SEC made there announcement, Tesla's stock fell hard after hours and finished last Friday at 362. We learned that the SEC offered a settlement to Musk who refused it. Over the weekend we learned that Musk and Tesla made the settlement deal and the stock erased Friday's drop completely.
After erasing Friday's drop, Tuesday Tesla announced their delivery numbers which were a huge increase from past performance. Tesla's stock moved up at open and moved down for the rest of the day. Then today we found that Musk threatened the board not to make the deal or he would quit. Tesla's stock has continued to move down on Wednesday and bottomed for the day around 292.
What we have learned is that when Tesla is down real low on Friday, buy a Call Option for the next week and you will be happy by Monday afternoon. Next up for Tesla will be their earnings report. If they turned a profit in the third quarter of 2018, we might see Tesla hit that $420/share mark.
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