Tesla stock is predicted to decline due to rich valuation, Chinese competition, and U.S. consumer confidence

From Yahoo Finance: 2025-04-10 13:10:00

Tesla (TSLA) analyst Tony Zhang is bearish on the stock, citing its rich valuation and loss of market share to Chinese competitors. Zhang predicts consumer confidence decline in the U.S. will impact Tesla negatively, along with stock market weakness. Q1 deliveries were below expectations.

Zhang recommends a bearish options play on TSLA, advising traders to buy May 2 puts with a $255 strike price and sell May 2 puts with a $210 strike price, paying net premiums of $15 per spread. TSLA shares have fallen 2% in the last month, down 38% in the last three months, but up 41% over the last year.



Read more at Yahoo Finance: Bearish Options Play on Tesla Unveiled by TSLA Skeptic