- Some institutional investors holding Tesla for the long term began to reduce their exposure in the first quarter, which seems to represent a temporary end to the Tesla high growth story; - Some people emphasized that Tesla's valuation has already deviated from its fundamentals, while others pointed out that it is better to buy high-quality companies like Nvidia instead of risky enterprises like Tesla.
On June 5th, Caixin reported (edited by Ma Lan).$Tesla (TSLA.US)$Its story is a typical American stock inspirational script, especially when it rides the wave of clean energy transformation policies, which once made Wall Street dizzy. However, the momentum of this trend has become weaker and weaker since 2021.
Tesla's stock price has fallen nearly 30% this year, and the market cap has evaporated about $600 billion from its historical high in 2021. Even more troubling is that some institutional shareholders who have long been firmly supportive of Tesla seem to be pulling out of Tesla's story.
John Belton, portfolio manager of Gabelli Funds, said the company sold 65,900 Tesla shares purchased in early 2022 in the first quarter of this year, noting that Tesla made people feel a disconnect between its stock price and its fundamentals.
Morningstar data shows that in the 18 long-term (since 2019) mutual funds that hold Tesla, 10 reduced their holdings of Tesla stock in the last quarter, with four trimming 15% or more. Only five funds increased their holdings of Tesla shares.
In the past, Tesla's strong stock price growth has led investors to hold onto the stock during downturns and view it as a technology company valuation rather than an auto manufacturer valuation. But now, even Tesla's loyal followers are starting to question their investment opinions and warn of a possible bubble.
The Next Best Thing.
Gerber Kawasaki Wealth and Investment Management Company bought 500,000 shares of Tesla stock more than a decade ago, but has been steadily selling it this year. Co-founder Ross Gerber believes Tesla's story is over.
He pointed out that Tesla's PR department is underfunded, and Musk's attention has been scattered by political and cultural issues, leading to a decline in Tesla's value. He complained that Musk has pursued personal goals over Tesla and shareholders' interests over the past year and a half.
But there are still some people who endorse Tesla's high growth. Dan Ives, an analyst at Wedbush Securities, said Wall Street is hoping to find long-term growth opportunities for Tesla through this painful transition, and self-driving may be the key. He set Tesla's target stock price at $275.
Another fanatical bull is Cathie Wood, aka the 'wood sister' at Ark Invest, who continued to add to her Tesla holdings in the first quarter and estimated that Tesla's stock price would reach $2,000 per share by 2027, with even pessimistic forecasts suggesting Tesla's stock price could rise to $1,400.
However, industry insiders emphasize that self-driving cars are a risky bet because the technology faces engineering and regulatory barriers. That's one reason why Graham Tanaka cleared out all his Tesla stocks from his growth fund in the past six months. His fund has held Tesla shares since 2011.
Being more realistic, Graham Tanaka, who has abandoned Tesla, has firmly invested in RSP. For him, it is better to find a new love early rather than go through difficulties with Tesla.$NVIDIA (NVDA.US)$
He also commented that when people hold companies like Nvidia, especially with a valuation that is only half that of Tesla's, and then look back at Tesla, they will feel that the risk is too great.
Editor / jayden