Avoid Exposure; Fundamentals Deteriorating

3 days ago

"I sold my Tesla positions back in January when the fundamentals started breaking down, margin shrinking, competition rising, and the story getting louder than the numbers. Since then, I've made better returns in companies with stronger margins and clearer growth. I'm staying out for now. I want to see real margin recovery, real cost discipline, and proof that the energy and AI bets can scale profitably. Until then, I'm watching, not buying. If you're holding Tesla long-term, fine, but it should be a small slice of a diversified portfolio, not the centerpiece, because this kind of stock doesn't crash gently. It snaps when sentiment flips."

The speaker explicitly notes that they sold their Tesla positions due to deteriorating fundamentals such as shrinking margins, rising costs, and intensifying competition. They advise investors to avoid allocating significant capital to Tesla until there is clear evidence of margin recovery and cost discipline. The recommendation is to remain cautious with Tesla, limiting exposure despite its profitability and cash reserves.

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