Tesla Chargers NAPA, CALIFORNIA - OCTOBER 10: Tesla charging stations are tied off with caution tape to prevent cars from charging on October 10, 2019 in Napa, California. PG&E has continued plans to cut power to hundreds of thousands of customers across central and northern California as a precaution against starting wildfires as low humidity and high winds increase the threat in the area. (Photo by Thearon W. Henderson/Getty Images)

Tesla Chargers Are Taking Over the EV Space

By:Mike Butler

Tesla charging stations are set to become the ubiquitous industry standard.

  • Drivers can soon use Tesla chargers to power up their GM and Ford electric vehicles.
  • Strategic charging locations and the sheer quantity of stations may have led GM & Ford to jump on board.
  • TSLA stock has more than doubled since the start of 2023.

In a shocking turn of events, General Motors (GM) and Ford (F) seem to have bent the knee to the charging capabilities and locations that Tesla (TSLA) has scattered across the United States. This now gives Tesla even more of a stranglehold on the EV market, and the stock market does not disagree. TSLA stock is up to $256 as of June 28, significantly higher than the 2023 open of $118.47.

Tesla (TSLA) YTD chart 06/28

TSLA call skew—more room for the bulls?

A lot of analysts are calling for the end of the recent TSLA rally, even after good news has come out around the stock. Many point to internal issues Tesla is battling, but there is still significant call skew in the TSLA options market. That means the market is pricing out-of-the-money (OTM) calls higher than equidistant OTM puts.

This translates to a bullish market perception of a high-velocity move, but it does not necessarily mean the stock is going to move to the upside. Either way, traders can use this pricing difference to strategize as they see fit.

In the image below, we can see that in the July options cycle, with TSLA trading at $255, the $275 call option 20-points OTM is trading for $8.85, significantly higher than the put price of $6.75 20-points OTM to the downside.

Tesla call skew chart

Tesla wins the charging battle, but GM & F stock prices are surging

Tesla certainly benefits from the charging deal, but it gives rise to an interesting point:

Now that Ford & GM electric vehicles will be able to charge at MANY more stations across the country, that are located in safe and convenient places, will this increase demand for non-Tesla EVs?

Since the beginning of June, GM has rallied $6, moving from $32 to $38 per share, almost a 20% increase:

GM YTD chart

Since the beginning of June, F has rallied $2.00, increasing from $12 to $14 per share, almost a 20% increase:

Ford YTD chart

Any way you slice it, GM and Ford adopting the Tesla charging technology is positive news for the EV space in the United States—more accessibility means more demand, and 2024 could be huge for EV production.

Tesla stock has a current expected move of +- $56 from the current stock price of $256 through the December options expiration cycle. Tesla has the highest implied volatility of these three stocks discussed.

Ford stock has a current expected move of +- $2.20 from the current stock price of $14.75 through the December options expiration cycle.

General Motors stock has a current expected move of +- $6.35 from the current stock price of $38 through the December options expiration cycle.

Mike Butler, tastylive director of market intelligence, has been in the markets and trading for a decade. He appears on Options Trading Concepts Live, airing Monday-Friday. @tradermikeyb  

For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.

Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.  Options, futures, and futures options are not suitable for all investors.  Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.

tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.

tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.

tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.

© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved.  Applicable portions of the Terms of Use on tastylive.com apply.  Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.