Tesla Stock Price Analysis Video. Tesla Hits A Record High: Time To Sell?!
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Tesla Stock Price Analysis. Tesla Stock (TSLA) hit an the all-time high level above $424 on Wednesday, December 11, 2024.
Is it time to sell Tesla stock?
As a long-term value investor, here’s my investment strategy and why.
I have been investing in Tesla stock since 2015. However, my strategy for Tesla has been different than that of many of my other tech stocks, such as Nvidia, Meta, or Alphabet.
I create my investment strategies based on the five points of the Invest Diva Diamond Analysis. This includes capital, intentional, fundamental, sentimental, and technical analysis. This is exactly how I grew my portfolio from $500/ month to over $5 million in less than a decade.
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Tesla Stock Fundamental Analysis
In April 2024, Tesla dropped the prices of its new vehicles which basically eliminated their profit margin. To many investors, this appears to be an odd move.
Has Tesla gone too far? Is it gonna go out of business?
How would Tesla remain in business? Is this a dumb move, or Elon has something else in mind?
For one, this has been putting pressure on all their competitors to drop the prices of their EVs.
And what many investors forget about is that Tesla’s secret weapon is selling software. Full autonomy is $10,000 pure profit, and other over-the-air software upgrades will come in the future… they could even sell it as a monthly subscription and this is something that Tesla’s competition do not have the infrastructure to compete with Tesla on.
Because if they choose to continue to compete with Tesla on price, they will hurt their profit margin.
To me, Tesla has always been more than a car company. It is rather an ideology led by a charismatic and often problematic leader, Elon Musk.
The vehicle is a way to sell software. Tesla is the iPhone of cars… and eventually, Elon Musk may even start bringing on apps to compound on his monthly subscription basis.
Elon Musk was greatly successful at creating a unique infrastructure needed for Electric Vehicles to become mainstream in the United States, something its peers appear to have not been able to come close to.
However, Musk has his own personal agenda when it comes to his leadership, which doesn’t always match the shareholders’ expectations for stability.
For that reason, every time Elon has had a change of heart in his focus, whether its his many companies or political beliefs, we see the fluctuation reflected in the Tesla stock price.
The most recent boom came after Elon Musk switched from his Democratic base to helping the Republican presidential nominee, Donald Trump, win the U.S. elections.
Tesla Stock Sentimental Analysis
After Trump won the 2024 U.S. elections, Tesla stocks was one of the more obvious winners as Elon Musk started spending almost every day with Donald Trump.
This got Wall Street excited about the future of Tesla as it relates to Elon’s close relationship with Trump.
However, to me, this is merely a ‘buy the rumor’ phenomenon as Trump has yet to take office.
Such a phenomenon is typically followed by a ‘sell the news’ selloff which we could potentially see later in 2025.
Tesla Stock Technical Analysis
When conducting an investment strategy, I not only look at the fundamentals and market sentiment, but I also look at each asset’s unique characteristics when it comes to price action. Tesla has long been a ranging/ growth stock.
What does that mean?
This means the Tesla stock price typically moves upward for a year or so, finds a new high, and then ranges for a couple of years before finding a new high.
On the weekly Tesla stock chart, you can see an angled double bottom chart pattern that formed during the 2023-2024 bear market. The stock price was also below the Ichimoku cloud.
In September 2024, we had our first long-term bullish signal when the Tesla stock price confirmed above the weekly Ichimoku cloud.
This bullish indication got stronger when the price broke above the $292 neckline of the double bottom chart pattern.
This is when I started looking into taking partial profit from the Tesla stock lots that I purchased back in 2021.
My Tesla Stock Profit-Taking Strategy
I set two sell limit orders after the November elections at $366 and $399, respectively.
The latter was filled on December 10th, 2024 as you can see in the screenshot below.
I only sold all long-term lots I have been holding on to for over a year. This strategy reduces my capital gains tax liability.
I’m selling because the gains have satisfied the investment strategy I set out when I entered these positions 2-3 years ago.
While I hold my top 10 holdings long-term without selling, I do take partial profits from stocks that have a more cyclical nature, such as Tesla stock (TSLA).
I still own more Tesla shares and I plan to sell at the next resistance levels at $491 and $554, respectively.
I also plan to buy more at the key support levels of $366, $338, and $317.
This is not financial advice, and results will vary.
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Disclosure: I am not a financial advisor and this is not financial advice. This information is for educational purposes only. This post ‘Tesla Stock Price Analysis – Balancing High Expectations with Market Realities’ may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please see terms of service page for more information.
#1 Best Selling Author. Helping you accelerate your retirement with Triple Compounding™ Former engineer on a mission to help 1 million households take control of their finances. Founder & CEO of Invest Diva.
