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Proprietary Data Insights Top Stock Searches This Month
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It’s Tesla and Everybody Else Despite concern that Elon Musk can’t effectively split his attention between Twitter and Tesla (TSLA), the data indicates these worries might be overblown. In The Juice’s proprietary Trackstar database of the tickers generating the most interest among investors, TSLA continues to dominate. Not only is TSLA #1 among all stocks, blowing away #2 Apple (AAPL) and the artist formerly known as Facebook, #3 Meta (META), it’s second on our list of names with the biggest surges in interest over the past week. Investors conducted 14,488 more searches for TSLA this past week than the week before. For the record, even though Twitter is no longer publicly traded, it still captured 130,991 searches, good for #40 overall in Trackstar. While interest cratered 80% week over week, that’s still an impressive showing. Why? Because, love him or hate him, people give a damn about Elon Musk. No matter what happens at Twitter, The Juice thinks Tesla will remain dominant among electric vehicle producers. Consider first a broad look at the EV landscape. Then, scroll with us for a focus on Tesla’s position of strength in the space. Source: Experian
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Love or Hate Elon Musk… |
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Key Takeaways:
We showed you the broad EV data. Now, let’s insert Tesla-specific numbers. Source: Experian As the chart indicates, Tesla accounted for roughly 71% of all new EV registrations in 2021. Here are some other stats:
Tesla buyers skew younger than people who purchase other EVs:
And it’s not that the monthly payment varies much among these three cars. The average payment on a Model Y is $843, compared to $795 for the electric Mustang and $660 for the ID.4. Tesla’s Stock Costs About $200 per Share And, if you’re a long-term investor, The Juice thinks it’s still a buy. Tesla dominates the EV space. If it weren’t for Tesla, we’re convinced there wouldn’t be a nearly as robust and fast-growing market for EVs. Last month, before its earnings report, The Juice explained how to squeeze income from Tesla stock. We followed up on the strategy post-earnings. Around earnings or not, we still love this approach of writing covered calls against all or part of your TSLA position. You’ll need at least 100 shares. As we explained in the links above, you typically collect hefty premiums writing (selling) covered calls against volatile stocks such as TSLA. Tesla’s implied volatility is still north of 60%, not far from where it was when it reported its Q3 numbers. (We also explain implied volatility at the links.) As of Friday’s close, you could write (sell) the TSLA $205 December 16, 2022, call and collect approximately $11.10 a share (x 100 = $1,110 for every call you write) in premium income. Not a bad way to bide your time amid the noise around Twitter, Tesla, and Elon.
The Bottom Line: Tesla stock is down about 51% year to date. Given pretty much across-the-board growth at the company – revenue up 56%, net income up 103%, and earnings per share up 69% year over year – The Juice thinks the aforementioned Elon-induced hysteria accounts for much of the downside. If you’re a long-term investor, you can, of course, buy on dips. But you can also generate income from your existing position by writing covered calls. At the same time, you’ll follow another key tenet of long-term investing: Buy best-of-breed companies. While you can’t necessarily call Tesla the Procter & Gamble (PG) of its space, it still deserves best-of-breed status. Because it’s earned it. The latest numbers on EV penetration don’t lie. |
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