03:27 PM EDT, 04/05/2024 (MT Newswires) -- Tesla (TSLA) put options skyrocketed 2,800% Friday after a report earlier in the day that the company was shelving plans to build a cheaper electric vehicle, according to Bloomberg.

The company's low-cost electric vehicle is viewed as a key driver by investors for sales growth and Reuters' report caused Tesla shares to fall before reversing course on Chief Executive Elon Musk's denial of the report.

Some 54,000 contracts of $160 Tesla put options went as high as $1.75 on Friday during the stock rout, from $0.06 a day earlier.

Over 150,000 of the options traded on Friday at a volume-weighted price of $0.65, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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