Bought Expectations, Going to Sell Facts. Part II
I believe that Elon Musk may benefit much from his heading up a proposed Department of government efficiency, but the electric-car-building owner would hardly participate in any kind of direct lobbying for Tesla business. I admire him as a great influencer of common sense in this growingly insane world, and I am sure he is able to drive a drastic turn to efficiency in bloated federal agencies. Again, Tesla is less dependent on tax credit for selling electric vehicles as other representatives of the industry, so that his brainchild company may more easily survive in case of regulatory changes in this field. Yet, I am not so sure that Tesla benefits from the whole situation cost more than a $250 to above $350 price jump in a nearly one week period, not to mention the stock is now soaring more than 60% compared to its recent retracement dips below $215 per share in the second half of October.
As I wrote before, Musk's projections for a 20% to 30% pace of growth was very cute, but the current level of it corresponds to 6% YoY. Elon also said it's "pointless" to build a $25,000 Tesla for human drivers at the moment, but it is a good question if a newly presented fully autonomous car can be available for this price, or if it will be more expensive because of the mostly inflation-driven environment. I love my stake in Tesla, but even my recently adjusted range for Tesla share price rise has been surpassed by far, when the stock entered a $350+ area. And I sincerely don't like such kind of volatility when the stock tries to erase 6% to 8% of its recent gains, as happened a day before when Tesla price adjusted according to several doubts, even though it climbs 3% to 5% again the following day. Therefore, I just made an easy decision to take profit partially here and now to half the volume of my current position in Tesla.
Beginning today, this means I converted half of my previous stake into cash, leaving the other half of it in persistent hopes for further mid-term gains. Markets still emanate unbridled optimism on Tesla prospects, which may send the stock higher than $400, yet I cannot exclude the possibility of another wave of a strong bearish correction for Tesla that happened not once or twice after reaching new stratospheric heights.
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