Traders Bet $550 Million Against Tesla Before Earnings

Tesla is heading into earnings day on July 22 with significant pressure from both technical analysts and the options market. Carter Worth, a veteran market analyst, recently pointed to bearish signs on the company charts. He notes that money flow has turned negative, suggesting that sellers currently hold the advantage.

The options market appears to agree with this cautious outlook. Traders have placed roughly 550 million dollars in bets against the stock. Furthermore, the put to call ratio has climbed from 0.54 to 0.74 over the past two weeks. This indicates that investors are increasingly hedging their positions in anticipation of a sharp move when the quarterly results go public.

While several major banks have raised their price targets for the stock recently, analysts remain divided on the long term outlook. Nine of the top 18 analysts still maintain a hold rating on the company. The market seems skeptical that strong delivery numbers will be enough to move the price higher, especially since those results are already widely known.

Investors are now focusing on profit margins and updates regarding the robotaxi project. History shows that Tesla stock has struggled following recent earnings reports even when delivery goals were met. All eyes will be on the Wednesday report to see if management can justify the high expectations or if the downward pressure from traders wins out.