Tesla certificate with an 8.51% chance and 48% safety buffer

Tesla certificate with an 8.51% chance and 48% safety buffer

Due to the high volatility, an investment in Tesla shares (ISIN: US88160R1014) was and is associated with considerable risks for short-term investors. For long-term investors who are not worried by the daily fluctuations in the share price, an investment in the has definitely paid off. Over the past 12 months, the price of Tesla shares rose by an incredible 780 percent, and the share price has doubled for three months.

Two months ago, the steep upward movement of Tesla shares was replaced by a volatile sideways movement.

The investment idea: Investors who are interested in investing in Tesla shares, which were very lucrative in the past, even after the massive price increases, could consider investing in attractively equipped discount certificates.

If you want to exchange the unlimited profit potential of the direct equity investment and the prospective dividend payment for the chance of a sideways return, you can choose from a variety of suitable discount certificates.

How it works: If the Tesla share is quoted at or above the cap on the valuation day of the certificate, the discount certificate will have its maximum amount of 225 USD, which at the current euro / USD exchange rate of 1.174 USD is a euro equivalent of 191.65 euros will be repaid.

The key data: The Morgan Stanley Discount Certificate (ISIN: DE000MA1U3Y8) on Tesla shares is capped at USD 225. The valuation date is June 18, 2021, the certificate will be repaid on June 25, 2021. At the Tesla share price of USD 436.95 and the Euro / USD rate mentioned, investors could purchase the certificate for EUR 176.62.

The chances: Since the certificate is currently available for EUR 176.62 (= USD 207.35), it will enable a gross return of 8.51 percent in the next nine months with a halfway constant EUR / USD exchange rate, if the The share price on the valuation date was not listed at 48.51 percent compared to its current value in the red. In contrast to bonus certificates, with discount certificates only the closing price relevant on the valuation date is of importance for the investment result. A decline in the euro against the USD will have a positive effect on the investment result.

The risks: If the Tesla share is listed below the cap of USD 225 on the valuation day, the certificate will be redeemed at the closing price of the share determined on the valuation day. If the share then trades below the purchase price of the certificate, the investment will end in the red. A rise in the exchange rate of the euro against the USD will have a negative impact on the investment result.

This article does not constitute a recommendation to buy or sell Tesla shares or investment products based on Tesla shares. No liability is assumed for the accuracy of the data.


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