Investor sentiment toward Tesla turned sharply negative last week following a public social media feud between CEO Elon Musk and President Donald Trump. The online exchange, which drew considerable media attention, injected fresh uncertainty into an already volatile stock. Even as Tesla’s share price managed to rebound, underlying options activity revealed a deeply divided market outlook.
According to data from FactSet, Thursday saw put option volume on Tesla surpass 4 million contracts — the highest single-day total ever recorded. Puts are typically used by traders to bet that a stock will decline, and this surge in volume exceeded previous highs seen during the pandemic and other periods of crisis for the electric vehicle maker. The data illustrates how sentiment briefly shifted into aggressively bearish territory.
Bullish Bets Surged Too — A Divided Market
Not all investors were betting against Tesla. On June 5 — just a day before the peak in bearish activity — call option volume rose above 3.3 million contracts , the fourth-highest daily figure on record for the stock. Call options are generally used to speculate on a stock's rise, and the spike suggests that many traders viewed the pullback as a short-term opportunity.
This phenomenon — with both call and put volumes surging simultaneously — reflects classic market bifurcation . Some traders anticipated further downside amid the political drama, while others saw potential for a rebound if the situation de-escalated.
Share Price Recovers Despite Tensions
Tesla’s share price ultimately proved resilient. The stock rebounded more than 13% from its lows last week and added another 2.5% in premarket trading Monday , signaling that investor sentiment may be shifting once again. Much of this may be attributed to Elon Musk adopting a more conciliatory tone in his later social media posts, which appeared to calm some of the tension surrounding the company.
Volume in the underlying stock also surged, with more than 2 87 million shares changing hands last Thursday — one of the most active trading days of the year. Despite the unprecedented number of put contracts, the put/call ratio only reached 1.2, indicating a bearish lean, but far from the most extreme readings Tesla has seen in recent history.
Volatility, Sentiment, and Leverage Risk
Tesla has long been one of the most polarizing and heavily traded equities in the market. Its valuation, public profile, and CEO behavior continue to generate both fervent support and sharp criticism. The stock’s price swings — amplified by both media coverage and retail investor enthusiasm — often reflect more than just company fundamentals.
The latest episode underscores how external events, including political disagreements and personal disputes, can influence trading behavior and risk perceptions. Importantly, the use of options and CFDs around such high-volatility stocks introduces significant risk — especially when positions are leveraged . Traders should be aware that while volatility can offer opportunities, it can also increase the probability of rapid and substantial losses.
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Summary
Tesla’s record-setting put volume highlights the intensity with which traders reacted to last week’s political drama. Yet the simultaneous rise in bullish bets and the share price’s rebound point to a market that remains conflicted. While short-term sentiment was clearly shaken, long-term interest in Tesla as a trading asset remains strong.
As Elon Musk continues to recalibrate his messaging and as public attention shifts, Tesla remains one of the most closely watched — and actively traded — stocks in the global market. But the latest data is a clear reminder that trading sentiment can change rapidly, especially when external events dominate headlines.
