Tesla Just Saw its First Insider Buy in Five Years

Tesla (NASDAQ: TSLA) hasn’t been the safest stock on the market.

Most of that was because of protests and his involvement in the U.S. government.

The company even missed earnings expectations. Tesla reported Q1 revenue of $19.34 billion, as compared to the expected $21.43 billion. It was also below the $21.3 billion reported a year ago. Tesla also posted adjusted earnings per share of $0.27, as compared to the estimated $0.44.

However, it appears a good deal of negativity has been priced into the stock.

Three Catalysts Could Boost Tesla Even More

For one, Tesla director Joe Gebbia paid just over $1 million for 4,000 shares of Tesla. He paid an average price of. $256.31 per share. Before this transaction, insiders last bought shares of Tesla in February 2020.

Two, Elon Musk just said his time at DOGE will drop significantly, he said, adding, “Starting early next month, in May, my time allocation to DOGE [Department of Government Efficiency] will drop significantly.”

And, as noted by the BBC, “Tesla CEO Elon Musk has said he will step back from his role with the Trump administration’s cost-cutting team known as Doge. Those at the White House, including the president, have said it has long been the plan that Musk would soon step away, but the news came as the billionaire’s car business saw earnings plunge.”

Three, analysts at Wedbush just raised its price target on TSLA to $350 with an outperform rating, citing Musk’s recommitment to Tesla.

Robots Could Be a Big Part of Tesla’s Future

Investors are looking forward to sales of lower-priced models, artificial intelligence-trained driverless taxis in June and the potential for artificial intelligence-trained robots by the close of 2025. Better, analysts at Morgan Stanley say that a billion humanoid robots could be operational by 2050 and have a market value of $5 trillion.

“China is in [the] pole position,” said the firm, as quoted by Barron’s, but Tesla will be a big player. Its buy rating on Tesla “is underpinned by our belief that Tesla’s capabilities in key areas of physical AI, [self-driving cars], humanoids, and other form factors… offer growth and margin opportunities that greatly exceed those of the traditional EV business which is under pressure.”

So, What’s the Best Way to Trade Tesla?

There are three ways to trade potential Tesla upside.

One way is to just buy the Tesla stock, which after finding triple-bottom support is now back up to $292.03. From here, we’d like to see it again challenge $380 near term.

Another way to trade Tesla is by buying the Direxion Daily TSLA Bull 2X Shares (TSLL). With an expense ratio of 0.95%, TSLL seeks 200% daily leveraged results of Tesla’s daily return. Since its inception in August 2022, TSLL ran from about $22.82 to a high of $40.26.

Now back to $10.97 thanks to the pullback in Tesla, TSLL is again offering a solid opportunity.

There’s also the YieldMax TSLA Option Income Strategy ETF (TSLY), which yields 3.87% monthly. Its last dividend of $0.6598 was paid on April 21 to shareholders of record as of April 17. With TSLY, the ETF generates monthly income by selling/writing call options on TSLA. It also offers exposure to the Tesla common stock.

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