To The Moon

🌟🌟🌟Tesla $Tesla Motors(TSLA)$  recent dip below USD 400 isn't a collapse.  It is currently at a pivotal point.  The sell off can be attributed to a combination of broader market pressures and company specific issues.

Tesla's Company Specific Factors :

Weak China Sales : Tesla's retail sales in China were the lowest they had been in 3 years.  Sales of Model Y plunged 62% in October compared to previous month, while Model 3 sales plummeted 68%.

Intensifying Competition :  In China, Tesla's market share slipped as it faced growing competition from local EV makers like BYD.  This occurred even as the broader new EV market in China continues to grow.

Tesla's market share in Europe has also dropped significantly in 2025.  This decline mirrors its struggles in China and is largely due to increased competition,   consumer fatigue with Tesla's aging model lineup and backlash against CEO Elon Musk's political comments.

Cathie Wood's sold off Tesla shares in November, which possibly contributed to the downward pressure on Tesla.    While ARK remains bullish on Tesla's long term prospects, the sales were part of portfolio rebalancing strategy and likely timed to capitalise on recent gains.

Product Recall :  A recall of over 10,000 Power wall 2 units in the US in November, following a similar recall in September, also added to negative investor sentiment.

Tesla's Mixed Fundamentals : Despite record sales globally in the third quarter, Tesla saw its profits drop year over year.  This was partly due to aggressive pricing to clear inventory, which eroded profit margins.  Some analysts believe that the recent strong US demand was heavily influenced by expiring federal EV tax credits, masking underlying weakness.

Broader Market Factors:

Tech Sector Sell Off : A market wide sell off in the tech sector, especially on November 14 25, affected high growth stocks like Tesla.  The broader Nasdaq 100 Index also fell significantly that day.

Interest Rate Concerns :  Comments from Federal Reserve officials lowered expectations for a December interest rate cut.  This led investors to move away from riskier, more speculative assets, putting pressure on Tech stocks with high valuations.

Is Tesla still a good buy or good bye?

Bullish long term outlook :

AI and Robotics Potential :  Tesla's valuation is largely driven by future growth in areas like Robotaxis, AI and humanoid robots which have the potential to generate significant revenue. 

 ARK Invest has a current official price target of USD 2,600 per share by 2029.  The core of ARK Invest's optimistic valuation is not based on Tesla's current electric vehicle sales but on its huge potential in autonomous technology.

Robotaxis are the key : ARK estimates that almost 90% of Tesla's value in 2029 will be attributable to its fully autonomous ride hailing Robotaxi business.  This business is expected to have a much higher profit margin than vehicle manufacturing.

Energy Business Growth : Tesla's energy storage division, particularly Megapack, is growing rapidly and provides a revenue stream beyond vehicle sales, helping to diversify Tesla's revenue. 

Strong Cash Position : Tesla has a significant amount of cash and marketable securities, providing financial stability for further investment in its visionary projects.

Technological Edge : Tesla maintains a technological advantage in battery technology and data center investments could create new revenue streams.

Concluding Thoughts 

Tesla is transitioning from a pure EV growth story to a more complex narrative centered on AI and Robotics. 

While the negative news around EV sales and profitability is a real short term challenge, I believe that in the long term Elon Musk's vision for autonomous technology, energy storage and AI, may see lots of exponential growth ahead.

So for me, Tesla is a great buy below USD 400, not a good bye.   Tesla is on fact revving up for its next revolution.  With AI in its veins, energy in its bones and Elon Musk's billions back on the table, this isn't a farewell. It is a full throttle Hello to the future.  Good Buy indeed. 

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