Assume that you are a recently appointed hedge strategist for Tesla and that you have been requested to make recommendations of hedging strategies considering the current circumstances, for presentation to the board of directors at its next board meeting based on the statements provided below.

In the case of Tesla Inc, the company has a portfolio beta of 1.5 and is represented under the S & P 500 Index. The portfolio beta represents a measurement of systematic risk and is utilized in the capital asset pricing model (CAPM), whereby it elaborates the relationship between expected return and systematic risk for assets. Since the broad market usually has an average beta of 1.0, it can be concluded that Tesla Incs holdings in the S & P 500 Index are exposed to high levels of systematic risk. A beta greater than 1 means that a stocks price fluctuates more randomly than the broad market.

Make firm recommendations on whether to hedge all, part or none of the equity price risk statement above. Please provide explanations for your recommendations.