Is Tesla Stock Gearing up for Another Big Run?

Tesla stock was one of the greatest stock picks of my career.

I actually began writing about Tesla (NASDAQ: TSLA) before it was public, then recommended investors buy some after it went public.

At the time, electric cars were still considered little more than toys for wealthy eccentrics and overzealous treehuggers.  In fact, in 2007, I spoke about electric cars at an energy conference.  My presentation was met with laughter, mockery, and in some cases, anger.

But I did my research.  I interviewed engineers and CEOs.  I took test drives and visited battery manufacturing facilities.  It was clear that something was happening.  And despite a lot of people telling me I was crazy, I stuck to my guns.

I even became a sort of defender of Tesla and its CEO, Elon Musk.

From the early days, when Musk was the target of conservatives who eschewed anything that even hinted at the possibility of being “better for the environment,” to 2025, where the radical left decided to trade its interest in environmentalism for vilifying people who own Teslas, I’ve long maintained that Uncle Elon has done far more than most to make the world a better place.

Think about his companies…

• Tesla — Launched the EV market which has resulted in a fully-verified decrease in air pollution and carbon emissions.  
• SpaceX — Created a reusable rocket that has drastically cut the cost of space travel while strengthening America’s dominance in space exploration.  And let’s not forget that if it wasn’t for Musk, those astronauts that were just rescued by SpaceX may not have ever made it home.
• Neuralink — The brain-computer interface that is on its way to making it possible for the blind to see, the deaf to hear, and the paralyzed to walk, talk, and breathe without the assistance of any other medical devices.

None of this is insignificant.  And don’t ignore how many direct and indirect jobs this guy has created, too.  Millions of people are now earning a paycheck because of Elon Musk.

Indeed, I’ve long been a fan.  And while I may not always agree with him when it comes to politics and social issues, I’m not so foolish to let that trivialize his meaningful and substantial contributions to society.  But I won't lie.  I am bothered by the fact that the Tesla brand is being dragged through the mud because of politics.

The Tesla Stock Roller Coaster Ride

Tesla had an amazing run leading up to the election, and shortly after the election, too.

From the day of the Trump win to mid-December, 2024, Tesla climbed more than 102%.  Tesla stock essentially doubled in 6 weeks.  But those gains have been completely wiped out since the start of the year.

Some of this is the result of Chinese competition, which is really crushing every other global EV maker.  Inflationary pressures are making it difficult for consumers to buy new cars, too.  And this is affecting all car makers.  Not just Tesla.  But it would be foolish to deny that Tesla now has an image problem that’s just not good for business.

I actually drive a Model Y, and last week, someone asked me if I feel stupid owning a Tesla.  This was not a person I know.  Just some random guy who was clearly looking to pick a fight with me.  But I didn’t bite.

Of course I don’t feel stupid for owning a Tesla.  It’s actually the best car I’ve ever owned.  I’m not sure I’ll ever buy another brand of car at this point.  And I’m sure as hell not going to let public opinion sway my buying decisions.  I didn’t do that when I was telling people to buy the stock back in 2010 — when it was the anti-EV crowd criticizing my decision.  And I’m not going to do it now, while it’s the holier-than-thou left attempting to intimidate me with vitriol and threats.

Now, to be honest, I really don’t know how Tesla stock will perform throughout the rest of the year.  All car makers are struggling.  And I suspect Tesla will struggle, too.  But I don’t think the backlash against Elon Musk will be enough to derail Tesla stock over the long haul.

Still, if you’re looking to reduce your exposure to risk during these uncertain economic times, I’d wait for some of the smoke to clear before considering getting in on Tesla before it runs again.  And indeed, it will run again.

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