Tesla Inc.’s stock has plummeted by 32% since reaching its record high in mid-December, but some traders see a chance to hedge the market’s decline. With shares still trading at a premium compared to expected profits among large tech firms, investors believe there’s room for a potential downturn.
The recent rout has detached Tesla from the fundamentals of the car business, which had driven up the stock on hopes that President Trump’s return and Elon Musk’s political influence would ease regulatory hurdles and accelerate the development of Tesla’s self-driving technology. Now, as the post-election rally unwinds, traders are taking a closer look at put options as a way to protect their portfolios.
Source: https://www.bloomberg.com/news/articles/2025-02-11/tesla-unwind-gives-options-traders-a-way-to-hedge-market-selloff