Tesla Stock Manipulation: Analyst Gordon Johnson Claims Options Trading Amid Declining Global Market Share

Tesla's stock price stability is attributed to aggressive call buying, according to analyst Gordon Johnson. The put-to-call ratio has collapsed, and options metrics show more call options than puts are being traded. Tesla faces growing consumer distrust over FSD technology and declining global market share.

Tesla's (NASDAQ: TSLA) stock price has remained relatively stable despite mounting challenges, according to Wall Street analyst Gordon Johnson of GLJ Research. Johnson recently alleged that the stock's price is being artificially supported by aggressive call buying in the options market [1].

Johnson's contention is that Tesla's stock price is not driven by its business fundamentals but rather by speculative flows in the options market. He pointed to a sharp collapse in the put-to-call ratio from 0.85x on August 28 to 0.67x on August 29, indicating a significant shift in sentiment driven by options traders. This ratio, which measures bearish put contracts against bullish call contracts, suggests traders are betting heavily on upside moves, effectively stabilizing Tesla's stock price [1].

Notably, Tesla's open interest ratio has hovered below 1.0 throughout the year, indicating a persistent tilt toward call buying over puts. Johnson argues that this pattern amounts to 'engineered support' for Tesla's stock rather than price action justified by earnings or operational performance [1].

Despite facing rising competition, falling sales, and backlash against CEO Elon Musk, Tesla's stock price has stayed mainly above the $300 level for most of the year. The company's second-quarter performance highlighted these concerns, with deliveries dropping 13.5% year-over-year to 384,122 vehicles and profits plunging 71% [1].

Analysts remain divided on Tesla's outlook. While GLJ Research reaffirmed its 'Sell' rating on August 21 with a bearish target of $19.05, Morgan Stanley reiterated a 'Buy' rating a day later, projecting $410 per share [1].

MarketBeat reports that out of 42 analysts who have issued ratings for Tesla in the last 12 months, the stock has a consensus rating of "Hold." The average price target is $303.31, with the highest target at $500.00 and the lowest at $19.05 [2].

Tesla faces growing consumer distrust over its Full Self-Driving (FSD) technology and declining global market share. In Europe, sales declined 40% year-over-year in July, marking seven consecutive months of market share losses to rivals [1].

References:
[1] https://finbold.com/wall-street-analyst-alleges-tesla-stock-is-being-actively-manipulated/
[2] https://www.marketbeat.com/stocks/NASDAQ/TSLA/forecast/