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Tesla's Upcoming Earnings: A Ripple Effect on Options Opportunities

  • Stonky
  • Jul 12, 2023
  • 2 min read

The coming earnings date for Tesla Inc. (TSLA) is sparking a flurry of investor interest, not only in the electric vehicle (EV) giant but also in other related stocks and ETFs. With an anticipated Earnings per Share (EPS) of $0.69 and a projected move of ±8.4% post-earnings, the ripples of this activity are expected to impact the broader market. Particularly, those associated with the EV sector, lithium production, and clean energy.


TSLA's recent aggressive pricing strategy, aimed at capturing a larger market share, coupled with the relentless focus on climate change and the growing acceptance of EVs, is expected to further solidify Tesla's position in the industry. This, in turn, has resulted in a bullish market sentiment towards TSLA, which could impact other stocks and ETFs.


One such stock is Lithium Americas Corp (LAC). As the demand for Tesla's lithium batteries escalates, LAC, a major lithium producer, is expected to see a positive correlation with TSLA's earnings. Similarly, Albemarle Corporation (ALB), another leader in lithium production, could also benefit from the surge in demand for electric vehicles and their batteries.


Looking beyond lithium-focused stocks, ETFs like iShares Global Clean Energy (ICLN) could also feel the ripple effects of TSLA's earnings. As Tesla continues to lead the charge in the clean energy sector, there could be an uplift in ICLN's performance.


The iShares Self-Driving EV and Tech ETF (IDRV) is another investment vehicle that may see an impact. As TSLA plays a pivotal role in both the EV and self-driving tech sub-industries, any movement in TSLA's performance could have a significant effect on IDRV.


To summarize, TSLA's upcoming earnings date presents potential options opportunities not just for itself but for related stocks and ETFs as well. As the EV market continues to grow, coupled with Tesla's aggressive market strategies, the ripple effect of Tesla's earnings could be seen across the lithium industry and clean energy sector. However, these are merely projections, and actual performances will depend on a multitude of factors. As such, investors are advised to diversify their portfolios and make investment decisions in line with their risk tolerance and financial goals.

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