Tesla Stock Plummets as Early Sellers Share Insights
Tesla’s stock has taken a significant hit, plunging as much as 53% since December. While many investors have suffered losses, some retail shareholders managed to exit their positions before the steep decline. Business Insider spoke with several of these early sellers, who shared their reasons for divesting from the electric vehicle giant.
The decision to sell Tesla shares appears to have been influenced by two primary factors: CEO Elon Musk’s controversial public persona and concerns about the company’s business fundamentals.
Musk’s increasingly polarizing personality and political affiliations played a crucial role in some investors’ decisions. Mikhaela Delahunty, a former Tesla shareholder, cited Musk’s alliance with former President Trump and worries about Tesla’s brand image as key reasons for selling her shares.
Dan Chan, a former PayPal employee, expressed similar sentiments. Chan’s familiarity with Musk’s leadership style from his time at PayPal made him wary of the CEO’s recent political involvement. He drew parallels between Musk’s current actions and past behavior, suggesting that rash decisions could erode investor confidence.
Jonathan Goodman, another early seller, initially viewed Musk’s personality as an asset to the company. However, Goodman ultimately decided to sell his shares due to Musk’s political actions and gestures, which he felt were detrimental to Tesla’s image.
Beyond personality concerns, business fundamentals also factored into investors’ decisions to sell. Delahunty pointed to Tesla’s product recalls and quality issues as additional motivations for her exit. Chan expressed worries about the safety of Tesla’s self-driving technology and perceived cost-cutting measures.
Despite selling early, Delahunty noted that optimism for Tesla stock remains high among some investors. However, she remains confident in her decision to sell, citing the various factors that led to her divestment.
As Tesla’s stock continues to face challenges, the insights from these early sellers provide a glimpse into the complex decision-making process of retail investors in today’s volatile market.
