Evercore ISI is giving investors another way to look at Tesla stock after the electric car giant reported its first annual decline in deliveries. Analyst Chris McNally writes: “Bets on TSLA are bets on (Full Autonomous Driving)/Optimus growing, now $600 billion to $1 trillion ‘call options’ Means ‘call option.’ The new target is still 27% lower than Thursday’s closing price. The company sees the stock as a call option on these future technologies, as it carves out its core automotive business and technological advancements such as autonomous driving and robotics. Tesla sees it as “a tale of two stocks.” Chief Executive Musk’s close relationship with the incoming White House administration and friendship with President-elect Donald Trump should bode well for Tesla and help clear the path to regulatory approval, the company said. The stock has performed well in recent months, hitting new highs following Trump’s victory. Shares are up 57% since the election. “DJT as chairman could potentially reduce the overall regulatory risk for AV/AI, thereby accelerating the commercialization of the industry,” McNally wrote. He noted that the call option basket has risen to $900 billion, with the market pricing in a chance of success of 50%.
