Investors Can Take Advantage Of Tesla’s Price Dislocation

Summary:

• I recommend selling Tesla, Inc. stock due to poor performance, political risks, and overvaluation, despite recent gains following Donald Trump’s election win.
• Tesla’s sales have slumped in Europe and may face a political boycott in North America, affecting future earnings.
• The Chinese market is currently propping up Tesla, but potential trade tensions under Trump could harm sales.
• TSLA stock’s valuation is excessively high, with a P/E ratio 546% above the sector average, posing significant risk to investors.

I last told investors to sell Tesla, Inc. (NASDAQ:TSLA) in July 2023, and the stock fell by around -60% to its 2024 low. After a rally of 200% from that level, I believe we are back into overbought territory and investors should

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