Elon Musk’s Days as Tesla CEO Could Be Numbered: JPMorgan Analyst
Tesla CEO Elon Musk’s battle with the SEC could cost him the role as chief executive, according to one Wall Street Tesla bear. | Photo by Frederic J. BROWN / AFP
Elon Musk is the tech billionaire that many people from Wall Street to Hollywood (e.g., Johnny Depp) love to hate. At a time when investors should be celebrating the Tesla CEO for the release of the Model Y, an electric SUV crossover, analysts are instead pouncing on Musk and TSLA shares amid renewed regulatory and key man fears, among other things.
JPMorgan strategists and analysts are targeting Musk and Tesla in recent reports considering the stock continues to trade on headwinds rather than tailwinds, suggesting there is more volatility ahead. The Tesla chief isn’t doing himself any favors by displaying what a JPMorgan report describes as “ongoing public belligerence” toward the U.S. securities watchdog, which strategists suggest could be his undoing as CEO.
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JPMorgan: Buy TSLA Puts
JPMorgan believes they have spotted an opportunity in the implied volatility in TSLA shares tied to “upcoming legal events” surrounding an ongoing dispute with U.S. regulators. The analyst firm suggests that the options market isn’t adequately pricing in risks surrounding TSLA shares.
For instance, Musk, who boasts 25 million Twitter followers, was sued by the U.S. Securities and Exchange Commission for recklessly using his social media platform to suggest he had secured funding to take Tesla private,