Tesla’s significant stock drop hasn’t deterred the confidence of certain retail investors. Business Insider engaged with three investors who indicated they capitalized on the decline in Tesla shares following its substantial fall. Many dismissed the $800 billion decrease as an “overreaction” and expressed their intention to hold onto their investments.
Tesla’s stock is currently priced nearly 50% less than its peak in December, yet the fallout of $800 billion has not dissuaded retail investors, who perceive the sharp decline as a chance to acquire more shares.
The investors consulted by Business Insider viewed the recent sell-off as excessive, even while institutional investors express concerns regarding Tesla’s electric vehicle business and the influence of Elon Musk’s political pursuits and additional ventures. On early Friday, Tesla shares saw a 3% increase, trading around $248, though they remain almost 50% lower than the all-time high of $479.86 recorded in December.
Neil Rozenbaum, a retail investor who initially purchased Tesla stock in 2019, stated he is unfazed by the recent drop. He described the swift decline as an overreaction by traders and mentioned, “I’ve experienced sell-offs before, whether it’s Tesla or another company, so it doesn’t really scare me that much,” during his interview with BI. Rozenbaum highlighted he invested approximately $10,000 in Tesla last Friday, coinciding with Tesla’s seventh consecutive week of losses, just before the 15% crash on Monday. He remains optimistic about Tesla’s future, especially with the anticipated release of a refreshed Model Y.
Regarding Musk’s political activities, which have raised concerns among some investors about the brand’s liability, Rozenbaum expressed no worries. He noted he would only consider selling his shares if there is a significant downturn in Tesla’s business or if Musk were to resign as CEO. “I like the guy; that’s probably why I bought shares. I mean, I bought Tesla shares because he’s the leader. I don’t think anyone else would’ve made Tesla that big, to be honest. So yeah, I’d say I’m a fan of what he’s doing,” he added.
Fabian Varcianna, who first invested in Tesla in 2022, also stated he isn’t prepared to relinquish his investment. Despite negative sentiments surrounding Tesla’s sales, his optimism centers on the company’s advancements in AI and full self-driving software, which he believes are leading the market. “Critics of the tech have never done proper research,” he remarked to BI. Varcianna revealed he invested around $24,000 in Tesla stock over several days in the preceding week. Similar to Rozenbaum, he is not overly worried about Musk’s involvement with the administration, viewing his multitasking as a testament to his work ethic. “I’m not a fan of any human being. However, he doesn’t worry me. He’s the world’s richest man, not by mistake,” he added.
Varcianna is not inclined to sell his stocks but will consider doing so if Tesla shares fall below $200 within the next six weeks, which would represent a drop of about 20% from Friday’s price. “I have profits from the past few years in Tesla. I am not in a rush to sell,” he stated.
Bilaal Dhalech, a trader who has fluctuated in his investments in Tesla since 2023, mentioned he acquired another $4,000 worth of Tesla stock on Monday, coinciding with the 15% decline in shares. “I’ll probably buy more if it goes down,” he shared with BI. Dhalech admitted to being slightly concerned about the decrease in Tesla’s car sales, but he remains optimistic about other ventures the company is pursuing, such as developments in Tesla’s Robotaxi service and the humanoid robot, Optimus. “To be honest, I’m not a huge fan of Tesla’s EVs,” he stated. “My bullish outlook is more on the AI and autonomous side of the business.”
Though Dhalech showed some concern regarding Musk’s political involvement, he holds this view lightly, asserting, “While it’s unfortunate that he doesn’t have more time to focus on Tesla, that’s the reality of running multiple companies. I don’t let politics or public opinion distract me from recognizing an opportunity. Tesla stock is down 50%, and that’s a chance to make money.” However, he is cautious about how high the stock might reach again. If Tesla ascends back to its all-time high or faces delays with its robotics and autonomous driving developments, Dhalech mentioned he plans to sell a “good chunk” of his holdings. Ideally, he would prefer to see Musk divert more focus away from his political duties by the end of the year. “I’d also love to see Elon shift his focus away from DOGE by the end of the year,” Dhalech expressed.
