Let me get right to the point: Tesla is a $5 Trillion company in the making. At a current market valuation of just under $1 Trillion, there is a 5X explosion of wealth ahead for the believers in this model. To achieve this rate of growth the company has to grow at the rate of 50% per year, something it is already doing and with the best years of growth still ahead.
Making 5X your money, even if it takes 5 years, is attractive enough, but that doesn't take into account the magic of option leverage. We have the ability and know-how in option trading to exploit exponential growth into enormous wealth, mind-boggling wealth.
There are only two conditions for this happen:
(1) Tesla grows at the rate of 50% per year, and,
(2) Our leveraged options capture all, most of, or even half of that return.
TSLA is +25% in the past six months from $597 to $910. Six months ago, on April 21st, the TSLA at-the-money Nov 19th $600C was trading at $75. It closed Friday at $312. That is a 300% gain.
If TSLA is growing at 50% per year, we can expect that kind of appreciation at least twice a year. But let's cut that in half and assume it only happens once a year:
2021-2022: $1 becomes $4
2022-2023: $4 becomes $16
2023-2024: $16 becomes $64
2024-2025: $64 becomes $256
Over the entire four years:
$1 becomes $256
$1,000 becomes $256,000
$5,000 becomes $1.28 million
$10,000 becomes $2.56 million
If as we expect, that +25% does indeed happen every six months, take those projected numbers above and double them.
It's not going to happen in a linear way, i.e., every six months TSLA is up a perfect 25%, but in the end, at some point in 2025, TSLA will leave behind a trail of 50% annual growth in every fundamental metric from revenues, to profits, to market capitalization to share price. This is just not my opinion, it also is the opinion of the single best "economist" that has been following TSLA for the past year, an anonymous YouTube blogger that has been suspiciously uncanny in his company projections. He's not Elon Musk, as those videos would be felonies, but doppelgänger does come to mind:
Increased Margin, Full Capacity, Economies of Scale, What Does It Mean?
This video presents the major foundation underlying a 50% per year appreciation in market cap and share price. If the projections, and they are not pie in the sky but more likely understated than exaggerated, if they do play out, it lays out the foundation for an option trading stratagem that will CHANGE LIVES.
At Blue Line Trading, in both Premium and Pro services, we have already begun the journey. Don't look back in a three years and lament, "Damn, it's too late now." Because it will be.
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Tesla Monthly With Fibonacci Extension Price Levels