Tesla/SpaceX Exposure (Patreon)

Disclaimer: The information provided in this trade alert is for educational and entertainment purposes only and should not be considered as financial advice. The author is not a financial advisor and is only sharing their personal trading activities in full transparency. The opinions expressed in this alert are the author's own and do not reflect the views of any other individual or organization. Investing in cryptocurrencies and other financial instruments involves a high degree of risk, and you should not invest money that you cannot afford to lose. Always do your own research and consult with a licensed financial advisor before making any investment decisions. The author is not responsible for any losses or damages resulting from the use of the information provided in this alert.

Hey Team

I am looking for exposure to SpaceX and Tesla and found a company. STM's has a business relationship with SpaceX for Starlink:

• There were rumors that STMicroelectronics (STM) had signed a contract with SpaceX to manufacture Starlink user terminals. They have been hit a bit earlier this year by the slowdown in EV sales but when I learned they are also used in the Starlink antenna I thought that would be a good proxy for growing Starlink sales!!!

• According to an anonymous source cited by Business Insider, the production agreement specified million terminals at a price of roughly $2,400 each.

• The total value of this rumored contract was estimated to be around $2.4 billion.

• A teardown video of a Starlink user terminal revealed many components with STM branding, lending credence to STM's involvement in manufacturing.

• Neither SpaceX nor STM officially confirmed this agreement when asked for comment.

In addition, Tesla uses STM

Tesla has been integrating STM's silicon carbide (SiC) MOSFET-based power modules in its electric vehicle inverters, particularly in the Model 3. This technology was first confirmed in 2018 through reverse engineering analyses. STM manufactures modules for key electrical blocks in Tesla vehicles, including traction inverters, onboard chargers, and DC-to-DC converters.

None of this data is broken out however.

That being said the ATR looks good - this is a play out to early 2026

I am seeing buy signals on ATR and on IADSS - ATR shows it has bottomed since Jul 2022 Level 3 and should rebound to Level 5 ie $43 or even higher.

GF also sees it as undervalued - financials are good but rebounding after an industry slowdown.

My Trade - I sold the Jan 2026 Puts and Bought the Jan 2026 Calls for a $27 Strike - My breakeven on the Trade is for STM to hit 29.40 by Jan 2026 which I think is possible. I entered at $28.30. Very little downside and lots of upside. By the way it was over $30 3 weeks ago.