Musk's Political Pivot Is A Textbook Dip-Buying Opportunity For Tesla

Geneva Investor
1.85K Followers
(8min)

Summary

  • Tesla's fundamentals remain strong despite political drama; the recent dip is a buying opportunity for long-term investors.
  • CEO Elon Musk's pivot away from President Trump could realign Tesla's brand with its original, liberal-leaning customer base, providing a positive catalyst.
  • Political risks, including potential subsidy removal, are likely already priced in; product quality and innovation will drive long-term value.
  • TSLA stock is volatile and richly valued, but I see a 5X-10X long-term upside; only suitable for investors comfortable with risk and holding for a decade.

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Tesla, Inc. (NASDAQ:TSLA) shares plunged 14% yesterday following CEO Elon Musk’s apparent pivot against U.S. President Donald J. Trump. In just one day, Musk went from being one of the strongest advocates of this administration to bringing forward strong political accusations

This article was written by

1.85K Followers
Investor based in Geneva, Switzerland. Follow me on Twitter @GenevaInvestor for daily macro & investing nuggets. I write about macroeconomics, global trends, and what I believe are asymmetric investment opportunities in the market. I have a Master's degree in Business Management. Currently bullish AMD, HIMS, PLTR, US equities, Bitcoin. Friend "Rex Investing" is also a contributor to Seeking Alpha. All opinions and analysis on SA are exclusively my own.

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.

At the time of writing, I only have minor exposure to Tesla (less than 10,000 USD), but I may increase my position in the next few days, depending on behavior of the stock.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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