Tuberville’s bet against Tesla stock cost him $2.86 million profit, reports say

Alabama Sen. Tommy Tuberville’s selling Tesla stock “put options” have caused him to lose a potential profit of around $2.86 million, according to various business news websites, including biz.crast.net.

According to the website Benzinga.com, shares of electric vehicle maker Tesla rebounded from a low of $194.07 on Oct. 31 up to $253.50 on Friday.

A put option is basically a bet a stock price will decrease. The technique is used to minimize the risk of losing more than a certain amount on a particular stock.

In November, AL.com’s William Thornton reported Tuberville bought three lots of Tesla put options and sold all of the Tesla shares he held on October 17.

Tesla stock had been on a downturn since the company reported third quarter results October 18.

Tuberville put options each amounted to $1,001-$15,000, with a strike price of $190 and an expiration date of Dec. 15, 2023.

On Nov. 16, after seeing news of Tuberville’s put option, Elon Musk, the owner of Tesla, posted on X/Twitter, the social media platform Musk owns, “They’re gluttons for punishment.”

Tuberville has in the past said he “has long had financial advisors who actively manage his portfolio without his day-to-day involvement.”

Tuberville’s stock trades have prompted some questions.

The senator in 2022 called a proposed ban on members of Congress trading stocks “ridiculous,” saying it would discourage some people from serving in Congress.