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Is it Worth Selling Tesla Shares
Analysing the Risks and Rewards of Selling TSLA Stock
Many investors have in their portfolio shares of Tesla, an extremely profitable stock that has grown over the last 5 years by more than 450%, but which in the last month has fallen by more than 28%, and many are wondering whether it is better to keep the shares, sell or even buy shares.
If we look at the stock itself to exclude Elon Musk from the picture, Tesla has a P/E of 115 which is absolutely unbelievably high, considering that for a company it is indicated that the P/E is somewhere between 10–15. For those of you who don’t know what P/E is, it’s price per earning, but if you want to know more about this indicator we’ll talk about it in a future article.
So it is clear that this stock was overvalued, but people continued to buy it thanks to Elon Musk who is a smart person with a very unique worldview.
The problem came when Elon Musk was given a position in the US government and he started to make the first decisions that people didn’t like. So many of them revolted and started to sell Tesla shares which led to the price dropping from $480 in December to around $230 today.
What do I think you should do with Tesla stock?