$Tesla Motors(TSLA)$ Tesla above $300? Great run, but I’m taking some chips off the table. Here's why:
Valuation Stretched: At over $300, Tesla trades at a forward P/E above 60. For a company with slowing delivery growth and fierce competition, that's rich.
China Risk: Tesla's dependence on the Chinese EV market is a double-edged sword. Rising domestic competition (BYD, Xiaomi) and regulatory unpredictability could squeeze margins.
Musk Overpromises: We’ve heard “full self-driving is coming” for years. Until it's commercially viable and approved at scale, it's all speculative hype.
Macro Headwinds: Interest rates remain high and consumer credit is tightening. Not ideal for high-priced discretionary purchases like EVs.
Conclusion: Great company, but the stock is ahead of itself. I’d rather lock in gains now and revisit below $270.
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