Tesla Inc (Ticker: TSLA) and Musk are running afoul of the Biden Administration and Chinese sales and AAPL is running out of ideas and Chinese sales.  The stupid headsets are not going to do it and nothing like the seismic changes to major industries like PCs, music and cell phones of the Steve Jobs era.

Both need to grow and India is a likely place.  That market is huge for both.

There is one I like better than the other.

Here’s why.

My Big Issue is the multiple on both companies

I know long term big companies experience multiple compression.  It has always happened.  The question is whether they will grow their way out of the multiple or the stock price gets cut in half.  AAPL has a history of the stock price cratering, TSLA went from $400 to $100.  Each stock has no problem getting whacked when the time is right.

Right now I have a TSLA trade working, delta neutral puts and stock, and one not working, long some upside call butterflies there were up pretty good dough a week or two ago.  Down right now.  I don’t own much AAPL here.  I think AAPL is a dead money trade currently.  TSLA could catch the AI bug with their robots and I could see TSLA stock price doubling in 5 years but not AAPL.  

I would not start buying TSLA again until $125 or so.  And it would be small since the stock moves around enough to make the delta neutral trade work.  The dead money trade in AAPL is diagonal put spreads or some kind of downside butterfly.

Lastly, Elon Musk is this generation’s Steve Jobs.  Tim Cook is well, Tim Cook, a solid operator.  Musk probably has 5 Tim Cook’s working for him between SpaceX and TSLA and whatever other adventures he’s got going.

We will cover the DEAD MONEY COMBO in the Trading Desk today.