Take Profits on Tesla Amid Headwinds and Overvaluation

3 months ago

Whitney Tilson

"Tesla is the stock that will really make all your readers spit up their coffee. I long ago was short Tesla very painfully and I have long said do not short Tesla at any valuation, but I think it's reached a point where you want to be taking some profits on it. With a trillion5 valuation and facing massive headwinds such as the loss of the $7,500 US tax credit and rising competition from Chinese EV makers offering vehicles as low as $8,000, I just don't see the core business justifying its valuation. The optimistic calls on robo taxis and Optimus robots do not materialize quickly enough to offset the decline in vehicle sales."

Advises taking profits and reducing exposure to Tesla given its unsustainable trillion5 valuation, headwinds from the removal of key tax credits, and intensifying competition in the EV space which undermine its long-term growth story.

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