MicroStrategy Stock ETF: MSTY Offers 100% ‘Yield,’ Exposure to Big Bitcoin Holder
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 22 2024
0mins
Should l Buy TSLA?
Source: Barron's
MicroStrategy and YieldMax ETF: The YieldMax MSTR Option Income Strategy ETF generates significant income by writing call options against its MicroStrategy holdings, achieving a yield of over 100% due to the stock's high volatility and recent price surge linked to Bitcoin.
Investment Risks and Returns: While the ETF has provided substantial returns since its launch, it carries risks associated with MicroStrategy's stock volatility, and investors should be aware that the call-writing strategy does not offer downside protection.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TSLA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 392.510
Low
25.28
Averages
401.93
High
600.00
Current: 392.510
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tesla's FSD System Faces EU Approval Skepticism
- Slow Approval Progress: Tesla's Full Self-Driving (FSD) system has received initial approval in the Netherlands, yet skepticism from EU regulators regarding its safety and technological capabilities, particularly in icy conditions, may hinder its rollout in the European market.
- Regulatory Concerns: Regulators from the Netherlands, Sweden, Finland, Denmark, and Norway have raised alarms about the FSD system's tendency to exceed speed limits and the ease with which drivers can bypass mobile phone usage restrictions, potentially leading to stricter regulatory requirements that could impact Tesla's market strategy.
- Public Pressure Strategy Backfires: Tesla's strategy of encouraging vehicle owners to pressure regulators for FSD approval has faced criticism, with regulators expressing frustration, which may complicate and prolong the approval process.
- Declining Market Share: Tesla's market share in the EU has sharply declined due to increasing competition, particularly from newer models and aggressive pricing strategies by companies like BYD and Volkswagen, which could adversely affect its future sales and profitability.
See More
OpenAI Co-Founder Testifies on Musk Dispute
- Testimony Insights: OpenAI co-founder Greg Brockman testified that Elon Musk never made commitments regarding the company's structure, emphasizing that OpenAI remains the best-resourced nonprofit globally, which counters Musk's allegations and highlights the organization's governance stability.
- Musk's Influence: Brockman noted that while Musk was instrumental in attracting some employees to OpenAI, he was also a polarizing figure for others, suggesting that this duality could impact the company's recruitment strategy and team dynamics.
- Financial Motivation Scrutiny: During cross-examination, Brockman admitted to not following through on a $100,000 donation to the nonprofit, with his equity stake in OpenAI's for-profit subsidiary valued at approximately $30 billion, raising questions about his personal financial motivations and potentially affecting public trust in his integrity.
- Equity Dispute: Brockman recounted a heated discussion with Musk over equity stakes in a for-profit affiliate, where Musk's angry reaction and subsequent actions, such as tearing a painting off the wall, not only reflect the tension among founders but could also have lasting implications for OpenAI's strategic direction.
See More
OpenAI President Disputes Musk's Claims in Trial
- Testimony Rebuttal: OpenAI President Greg Brockman, during the Musk v. Altman trial, refuted Musk's claims regarding early commitments, asserting that OpenAI remains the best-resourced nonprofit globally, which underscores the company's legal resilience.
- Secret Work Revelation: Brockman disclosed that Musk had enlisted OpenAI employees to secretly work on self-driving technology for Tesla in 2017, raising questions about resource allocation and potentially impacting OpenAI's reputation and employee morale.
- Equity Dispute: During the trial, Brockman described Musk's angry reaction during equity negotiations, highlighting Musk's domineering style, which could affect future investor confidence in OpenAI's governance.
- Financial Motivation Scrutiny: Brockman admitted in court that he failed to fulfill his pledge to donate to the nonprofit, despite claiming that OpenAI's mission was his primary motivation, which raises doubts about his personal financial interests and could affect public perception of his integrity.
See More
Musk Advocated for OpenAI's Profit Shift to Fund Mars Colony
- Musk's Control Ambition: OpenAI President Greg Brockman testified that in 2017, Musk sought to transform OpenAI into a for-profit entity to facilitate raising $80 billion for Mars colonization, indicating his strong desire for control over the company's future direction.
- Funding Needs and Equity Dispute: Brockman noted that Musk believed he deserved a majority stake in OpenAI to leverage his business experience for building a Martian city, a demand that sparked intense disputes with other executives, affecting the company's equity structure.
- Lawsuit and Damages Claim: Musk is currently suing OpenAI, claiming its shift to profit undermined its original charitable goals and is seeking $150 billion in damages, a lawsuit that could have profound implications for OpenAI's future trajectory.
- Future Financing Plans: OpenAI plans to invest $50 billion in computing resources by 2026, a substantial investment aimed at supporting its ongoing expansion in the generative AI sector, which may influence the success of its IPO plans.
See More
Shifting Investment Trends in Tesla
- Investor Mindset Shift: Rising expenditures on autonomy, robotics, and energy are reshaping investor perceptions of Tesla, indicating a market reassessment of its future growth potential.
- Free Cash Flow Impact: The direction of Tesla's free cash flow is influenced by these new investment trends, which could lead to changes in its financial health, thereby affecting investor confidence and stock price volatility.
- Risk/Reward Reevaluation: Investors are beginning to factor in autonomy and energy innovation as critical elements in assessing Tesla's risk/reward profile, potentially altering their portfolio allocations.
- Market Outlook: As technological advancements and market demands evolve, Tesla's future market outlook may appear more optimistic, attracting greater attention from long-term investors regarding its stock performance.
See More
Ford Advances EV Strategy Despite Industry Setbacks
- Platform Innovation: Ford's Universal Electric Vehicle (UEV) platform aims for profitability through a clean-sheet design, with expectations to reduce annual losses from $4 billion to breakeven by 2029, demonstrating the company's long-term strategic commitment to the EV market.
- New Model Launch Plans: Ford plans to introduce a midsize pickup truck priced around $30,000 next year, expected to be unmatched in price and product form, targeting the U.S. market's demand for affordable electric vehicles to enhance competitive positioning.
- Market Competition Pressure: Despite fierce competition from Chinese EV brands, Ford remains confident in the UEV platform's competitiveness, emphasizing the need to align pricing with consumer expectations to ensure survival and growth in the U.S. market.
- New Development Center Construction: Ford's new Electric Vehicle Development Center in Long Beach, California, spans 270,000 square feet and employs 350 professionals from Tesla, aerospace, and other sectors, aimed at accelerating future EV research and production, reflecting the company's focus on the future of electric vehicles.
See More
Tesla's FSD System Faces EU Approval Skepticism
- Slow Approval Progress: Tesla's Full Self-Driving (FSD) system has received initial approval in the Netherlands, yet skepticism from EU regulators regarding its safety and technological capabilities, particularly in icy conditions, may hinder its rollout in the European market.
- Regulatory Concerns: Regulators from the Netherlands, Sweden, Finland, Denmark, and Norway have raised alarms about the FSD system's tendency to exceed speed limits and the ease with which drivers can bypass mobile phone usage restrictions, potentially leading to stricter regulatory requirements that could impact Tesla's market strategy.
- Public Pressure Strategy Backfires: Tesla's strategy of encouraging vehicle owners to pressure regulators for FSD approval has faced criticism, with regulators expressing frustration, which may complicate and prolong the approval process.
- Declining Market Share: Tesla's market share in the EU has sharply declined due to increasing competition, particularly from newer models and aggressive pricing strategies by companies like BYD and Volkswagen, which could adversely affect its future sales and profitability.
See More
OpenAI Co-Founder Testifies on Musk Dispute
- Testimony Insights: OpenAI co-founder Greg Brockman testified that Elon Musk never made commitments regarding the company's structure, emphasizing that OpenAI remains the best-resourced nonprofit globally, which counters Musk's allegations and highlights the organization's governance stability.
- Musk's Influence: Brockman noted that while Musk was instrumental in attracting some employees to OpenAI, he was also a polarizing figure for others, suggesting that this duality could impact the company's recruitment strategy and team dynamics.
- Financial Motivation Scrutiny: During cross-examination, Brockman admitted to not following through on a $100,000 donation to the nonprofit, with his equity stake in OpenAI's for-profit subsidiary valued at approximately $30 billion, raising questions about his personal financial motivations and potentially affecting public trust in his integrity.
- Equity Dispute: Brockman recounted a heated discussion with Musk over equity stakes in a for-profit affiliate, where Musk's angry reaction and subsequent actions, such as tearing a painting off the wall, not only reflect the tension among founders but could also have lasting implications for OpenAI's strategic direction.
See More
OpenAI President Disputes Musk's Claims in Trial
- Testimony Rebuttal: OpenAI President Greg Brockman, during the Musk v. Altman trial, refuted Musk's claims regarding early commitments, asserting that OpenAI remains the best-resourced nonprofit globally, which underscores the company's legal resilience.
- Secret Work Revelation: Brockman disclosed that Musk had enlisted OpenAI employees to secretly work on self-driving technology for Tesla in 2017, raising questions about resource allocation and potentially impacting OpenAI's reputation and employee morale.
- Equity Dispute: During the trial, Brockman described Musk's angry reaction during equity negotiations, highlighting Musk's domineering style, which could affect future investor confidence in OpenAI's governance.
- Financial Motivation Scrutiny: Brockman admitted in court that he failed to fulfill his pledge to donate to the nonprofit, despite claiming that OpenAI's mission was his primary motivation, which raises doubts about his personal financial interests and could affect public perception of his integrity.
See More
Musk Advocated for OpenAI's Profit Shift to Fund Mars Colony
- Musk's Control Ambition: OpenAI President Greg Brockman testified that in 2017, Musk sought to transform OpenAI into a for-profit entity to facilitate raising $80 billion for Mars colonization, indicating his strong desire for control over the company's future direction.
- Funding Needs and Equity Dispute: Brockman noted that Musk believed he deserved a majority stake in OpenAI to leverage his business experience for building a Martian city, a demand that sparked intense disputes with other executives, affecting the company's equity structure.
- Lawsuit and Damages Claim: Musk is currently suing OpenAI, claiming its shift to profit undermined its original charitable goals and is seeking $150 billion in damages, a lawsuit that could have profound implications for OpenAI's future trajectory.
- Future Financing Plans: OpenAI plans to invest $50 billion in computing resources by 2026, a substantial investment aimed at supporting its ongoing expansion in the generative AI sector, which may influence the success of its IPO plans.
See More
Shifting Investment Trends in Tesla
- Investor Mindset Shift: Rising expenditures on autonomy, robotics, and energy are reshaping investor perceptions of Tesla, indicating a market reassessment of its future growth potential.
- Free Cash Flow Impact: The direction of Tesla's free cash flow is influenced by these new investment trends, which could lead to changes in its financial health, thereby affecting investor confidence and stock price volatility.
- Risk/Reward Reevaluation: Investors are beginning to factor in autonomy and energy innovation as critical elements in assessing Tesla's risk/reward profile, potentially altering their portfolio allocations.
- Market Outlook: As technological advancements and market demands evolve, Tesla's future market outlook may appear more optimistic, attracting greater attention from long-term investors regarding its stock performance.
See More
Ford Advances EV Strategy Despite Industry Setbacks
- Platform Innovation: Ford's Universal Electric Vehicle (UEV) platform aims for profitability through a clean-sheet design, with expectations to reduce annual losses from $4 billion to breakeven by 2029, demonstrating the company's long-term strategic commitment to the EV market.
- New Model Launch Plans: Ford plans to introduce a midsize pickup truck priced around $30,000 next year, expected to be unmatched in price and product form, targeting the U.S. market's demand for affordable electric vehicles to enhance competitive positioning.
- Market Competition Pressure: Despite fierce competition from Chinese EV brands, Ford remains confident in the UEV platform's competitiveness, emphasizing the need to align pricing with consumer expectations to ensure survival and growth in the U.S. market.
- New Development Center Construction: Ford's new Electric Vehicle Development Center in Long Beach, California, spans 270,000 square feet and employs 350 professionals from Tesla, aerospace, and other sectors, aimed at accelerating future EV research and production, reflecting the company's focus on the future of electric vehicles.
See More
