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- Throwing Out Tesla Stock for a While?
Throwing Out Tesla Stock for a While?
I rarely have any regrets, even about important decisions. And now I feel pretty sad when looking at the pace of descent in Tesla stock price. The point is that it was in my preliminary short list of shares to sell before Christmas, and later I omitted it from the list, "thanks" to its freshly updated weekly close highs in late December. For the third straight day, I still try to rethink about getting this hyping stock off my nicely growing portfolio, as it continues to spoil the overall performance after a viral tweet by Elon Musk, which you’ve all probably read. After already losing nearly 12% of its market value in the first dozen of days in 2024 on China's stagnating sales, Tesla has dropped by another 2.8% after Elon Musk initiated discussion, made out of nothing. If there would be no solid rebound of the stock detected today from fresh dips, I will consider the situation as a mental stop-loss for me. I would prefer to sell Tesla before a small profit may turn into a bigger loss. Of course, with an intention to come back some later, hopefully at a lower opening price or just in a proper time. What if Musk also wants to double his current stake at a better price somehow? For those who are not aware, what the hell happened here, specifically this Monday Musk wrote on X: “I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control. Enough to be influential, but not so much that I can’t be overturned.” He also added that "unless that is the case, I would prefer to build products outside of Tesla,” as “you don’t seem to understand that Tesla is not one startup, but a dozen". Musk owned a stake of only about 13% in Tesla when he wrote his post, which one may say stood at odds with remarks he previously made suggesting Tesla is already an important AI leader which relies much on its prowess in this domain. Besides, mostly all electric vehicle stocks came under pressure after Hertz Global said it would cut its EV adoption losses by offloading a third of its global fleet to buy gasoline-powered cars. That may put 20,000 EVs up for sale in the secondary market, including many Tesla cars (TSLA).
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