Market Analysis

Following Months Of Volatility, Is It Time To Sell My Tesla Shares?

A day doesn’t seem to go by lately when Tesla isn’t mentioned in some negative report, but that doesn’t mean it’s a bad investment.

Tesla (NASDAQ: TSLA) has never been a straightforward company — just look at its CEO? But while its credibility can often be a point of major contention between bulls and bears, there’s no ignoring that a recent string of bad news has seen its stock fall. 

But that doesn’t change its potential. 

What’s up with Tesla?

It was never going to be easy for Tesla to back-up its 2020 performance in 2021. After all, how does a $600 billion company grow another 720% in one year? 

And if last year was smooth sailing for the EV giant, 2021 has been a cyclone of issues:

  • Three separate mass recalls in 2021 so-far, amounting to roughly 200,000 vehicles. 
  • More federal investigations into its autopilot feature as well as Elon Musk’s Twitter behavior. 
  • Competition has ramped up — Mercedes, Volkswagen, and GM, to name a few — which will affect its ability to sell regulatory credits.
  • Bans on its vehicles have begun in China.

I may have missed a few but at face value, it’s been a much bleaker year for Tesla. 

However…

While Tesla’s share price may be in the red year-to-date, it’s worth remembering that this business is trading at prices roughly 500% higher than this time last year. It is also one of the latest additions to the S&P 500, total sales grew almost 40% in 2020, and it is by far the leader in a rapidly growing and highly lucrative market.

Investors considering selling their Tesla shares based on current trends should take a breather, remember why they bought in the first place, and ask themselves if this is the same company they believe in. If the answer is yes, then recent market noise doesn’t matter. 

To read more about Tesla as an investment, read our blog piece here.

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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here

Jamie Adams
Jamie is the Content Editor here at MyWallSt. His favorite stock is Apple, which is also the first stock he ever bought. Jamie is not only a big fan of its products, but he believes that the tech giant has a whole lot more to give the world, and hasn't even scraped the surface of its potential.