Tesla: A Harsh Wake-Up Call Is Coming

Summary
  • Tesla’s first Y/Y decline in annual vehicle sales and weaker Q4 deliveries indicate that its growth story is losing momentum.
  • Potential elimination of regulatory credits and EV tax incentives under the Trump administration could significantly impact Tesla’s profit margins and future vehicle deliveries.
  • Supply chain risks from potential tariffs and trade wars could further pressure Tesla’s financial performance.
  • Despite some growth opportunities, Tesla’s overvaluation and dependency on vehicle sales data makes its stock a SELL.

The disappointing report that was released earlier this month and showed that Tesla (NASDAQ:TSLA) experienced its first Y/Y decline in annual vehicle sales is a major red flag. For years, Tesla’s story was that it’s able to. I’m a Ukraine-based seasoned investor, who firsthand experienced what’s it like to live in an environment full of systemic geopolitical shocks when the war came to my home country. Despite this, I managed to build an all-weather portfolio that has been able to thrive in volatile markets. My goal is to help investors find event-driven geopolitical ideas that can generate strong returns during periods of economic and political uncertainty.

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