Tesla Stock Sale and Analysis

Introduction

• Sold Tesla stock for the first time since 2021.
• Shares purchased in June 2019 at $2,900; sold now for over $45,000.
• Reasons for selling and retaining some shares.

Reasons for Selling

Company Performance

• Tesla’s recent revenue growth has been poor:
  • 8% growth, 3% growth, 8% growth, -8% shrink, 2% growth over recent quarters.
  • Comparison to other companies like Coca-Cola, Pepsi, McDonald's, which had better numbers.
• Decline in gross margins since early 2022.

Lack of Pricing Power

• Companies like Meta, Apple, and Nvidia have shown strong pricing power, unlike Tesla.
• Tesla's ability to command higher prices is diminishing.

Valuation Concerns

• Tesla’s P/E ratios are high, especially compared to peers like Meta and Nvidia.
• Earnings per share growth and revenue growth are not strong enough to support high valuations.

Slow Progress

• Cybertruck and Semi production ramps are slower than expected.
• Delay in the release of new features, such as the range extender.
• Autonomous vehicle developments are lagging behind competitors like Waymo.

Elon Musk's Influence

• Concerns over Elon Musk’s focus and prioritization of Tesla.
• Perception of Musk as a controversial figure rather than a business innovator.
• Lack of preparation for high-interest rate environments.

Reasons for Retaining Shares

Future Market Potential

• Belief in near 100% EV adoption over the next decade.
• Tesla’s leading position in the EV market.

Autonomous Taxi Networks

• Potential for Tesla to lead in autonomous taxi networks.

Tesla's Services

• Expected growth in Tesla’s service areas, including self-driving subscriptions, supercharging, parts, and insurance.

Culture and Workforce

• Strong innovative culture and intelligent workforce at Tesla.

Future Outlook

• Upcoming Robo Taxi event on October 10th could influence stock momentum.
• Tesla’s potential to regain footing with new developments.

Conclusion

• The decision to sell some shares is based on a combination of company performance, valuation, and strategic concerns.
• Retaining shares is based on long-term belief in Tesla’s market positioning and future growth potential.