Tesla: 4 Reasons I’m Selling In 2025 After Years Of Buying And Holding (Downgrade)

Summary:

• I’m downgrading Tesla stock to a sell rating due to its excessive valuation, after holding the stock for years and entering at a mid-20s P/E ratio.
• Tesla’s $1.33 trillion market cap and 130x FY25 P/E ratio are unsustainable, especially compared to rivals like Rivian. Tesla’s revenue multiple exceeds Rivian’s by more than 4x.
• The upcoming lower-cost Model Q and potential tariff impacts pose significant risks to Tesla’s margins and bottom line.
• Elon Musk’s multiple commitments and the uncertain future of car ownership add further long-term risks to Tesla’s stock performance.
• In my view, it’s best to lock in gains here and wait to re-enter TSLA stock at a lower price.

This year in 2024, I’ve been incredibly fortunate to hold two of the fiercest-performing growth stocks in the market: Palantir (PLTR) and Tesla, Inc. (NASDAQ:TSLA). I’ve been an avid bull on

Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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