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Tesla’s newest bull is Nancy Pelosi, government filings show

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Tesla (NASDAQ: TSLA) has a new bull in Speaker of the House, Nancy Pelosi, who bought a substantial sum of the automaker’s stock, new government filings show.

Pelosi, originally from Baltimore, Maryland, and now a California-based Democrat, bought 25 call options on December 22nd, one day after joining the S&P 500. The calls have a strike price of March 18th, 2022, and the transaction’s value is between $500,001 and $1,000,000, the government filings show.

Tesla stock has surged from $70.10 to over $865 in the past year, accounting for a dramatic increase in price per share due to its growth and scalability. Pelosi’s bets could be based on the fruition that the newly-appointed President Joe Biden, who has a plan set for EV manufacturers to benefit greatly from sustainable vehicle manufacturing, has strong support for the electric transportation sector. Wedbush analyst Dan Ives said the now predominantly-Democratic senate could also positively affect the sustainable energy and transportation sectors.

“A Biden White House and Blue Senate is a very bullish political backdrop and a potential ‘game changer’ for Tesla and the overall (electric vehicle) sector in the US, with a more green-driven agenda now certainly in the cards over the next few years,” Ives wrote in a note to investors.

Tesla Q4 Earnings expectations boost stock two days before call

Biden’s plan looks to expand employment by adding “1 million new jobs in auto manufacturing, auto supply chains, and auto infrastructure,” including the electric-vehicle recharging infrastructure. There have also been talks of the reintroduction of the $7,500 EV tax credit that would give buyers a hefty break when they buy a sustainable vehicle. This could also leave out the disqualification of certain EV brands after it sells a set number of units. This will benefit Tesla greatly, as the company delivered nearly half a million cars in 2020 alone. The credit disappeared after 200,000 units were sold.

Pelosi is also a known investor of long-term options, according to DaveManuel.com, by way of TheStreet. “Pelosi and her husband love taking long-term options positions,” the site said. Based on the fact that Tesla closed at $640.34 on the day of Pelosi’s options purchase, “which means that the per contract cost was likely in the range of $300-$330 per contract, as Tesla’s options contain a very high amount of extrinsic value (time and volatility).”

Tesla is up around 16% so far in 2021, and the company plans to outline its Q4 2020 Earnings in a call on Wednesday, January 27th. At the time of writing, Tesla shares were trading at $868.74, up 2.6%.

Disclosure: Joey Klender is a TSLA Shareholder.

Tesla’s newest bull is Nancy Pelosi, government filings show

Source: https://www.teslarati.com/tesla-tsla-nancy-pelosi-options-buying/

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