Mike Khouw, a technical analyst, describes Tesla’s Cybercab as a game changer following the launch of the steering wheel and pedal-free vehicle in the Palo Alto area. Tesla shares closed near $376, up 5.4% on launch day, but remain well below the 52-week high approaching $499. He recommends an options strategy combining the purchase of December 390 calls at $32.50 and the sale of an October 425/330 strangle for a net debit of $15.70. The three strongest technical indicators over the past year for Tesla — MACD, DMI and RSI — are all currently bullish, which supports buying a long call. Khouw notes, however, that Waymo already has scale and trip volume Tesla has not yet matched, and that the Cybercab’s unit economics as a two-seater will only improve if utilization and regulatory permissions expand rapidly.
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