UBS analyst Colin Langan noted Tesla is making changes to its automated line and said at this late stage it is concerning and raises questions about the viability of its production targets. He remains cautious about its ramp up of the Model 3, which is expected to be the main driver of profits and cash flow. Langan reiterated his Sell rating and $195 price target on Tesla shares.
S&P Dow Jones Indices states: "Dow Jones Indices has determined it will add Tesla to the S&P 500 at its full float-adjusted market capitalization weight effective prior to the open of trading on Monday, December 21, 2020. As announced on November 16, 2020, S&P DJI conducted a consultation with market participants regarding the implementation of the addition of Tesla to the S&P 500. During the consultation, which closed on November 20, 2020, S&P DJI received a variety of feedback, including implementation suggestions beyond those proposed in the consultation. In its decision, S&P DJI considered the wide range of responses it received, as well as, among other factors, the expected liquidity of Tesla and the market's ability to accommodate significant trading volumes on this date."
Friday's total option volume of 24.9 million contracts resulted in net open interest growth of 3.19 million calls and 2.56 million puts. Palantir Technologies (PLTR), Tesla (TSLA), Apple (AAPL) and Snap Inc. (SNAP) saw the greatest growth. Top five new positions opened include 51k Vale (VALE) Jan-21 16 calls, 23k Snap Inc. (SNAP) 12/4 weekly 51 calls, 21k Snap Inc. (SNAP) 12/4 weekly 44 puts, 19k Snap Inc. (SNAP) 12/4 weekly 48 calls and 17k Tesla (TSLA) Jun-21 660 calls.