Keypoints:
🔑 My Tesla-heavy portfolio fueled by dreams of high returns came crashing down after a recent reality check on the company's fundamentals.
🔑 Employee dissatisfaction, product delays, and Elon's distraction with other ventures pushed me to diversify and prioritize long-term stability.
🔑 Selling at a loss was tough, but the peace of mind from a diversified portfolio is a valuable lesson learned.
Disclaimer: This communication is provided for information purposes only and is not intended as a recommendation or a solicitation to buy, sell or hold any investment product. Readers are solely responsible for their own investment decisions.
There's no denying the allure of Tesla. Their sleek designs, focus on sustainability, and promises of a tech-driven future captured my imagination, just like many others.
In fact, I became a Tesla Pollyana, dollar-cost averaging (DCA) into Tesla stock as it dipped, even selling other holdings to up my stake. My portfolio became heavily weighted towards Tesla, with the dream of it skyrocketing back to its November 2021 highs.
However, recently, I took a step back and did a deep dive into Tesla's fundamentals.
What I found wasn't what I expected. Glassdoor revealed a concerning picture of employee dissatisfaction.
Low ratings for career opportunities, senior management approval, and willingness to recommend Tesla as a workplace painted a picture of a potentially unstable environment.
(Note: when I started my position in Tesla in January 2021, they had pretty recent Glassdoor reviews, the layoffs which ensued probably cause a lot of employee dissatisfaction).
In today's competitive job market, attracting and retaining top talent is crucial. With whispers of a high employee turnover rate, I worried about the potential impact on upcoming new product development timelines.
Furthermore, looking at their hiring categories, it appears that Tesla is focusing on hiring Sales & BD role (73% of job openings), in oppose to be focusing on hiring Tech related role. This does not bode well with me especially for a tech heavy company like Tesla.
Adding to this concern was the Model Y's less-than-stellar rating on Edmunds.com.
This, coupled with delays in delivering on promises, cast doubt on whether upcoming projects like Robotaxis or the Optimus bot would translate to significant revenue anytime soon.
Then there's Elon Musk himself. While his vision is undeniable, his involvement in ventures outside of Tesla added another layer of uncertainty. These factors, combined with the shaky employee situation, led me to a tough conclusion: Tesla's fundamentals had weakened since I started investing.
This realization came with a difficult decision. I had to divest some of my Tesla holdings to bring my portfolio back to a more balanced allocation approach. While selling at a loss wasn't ideal, it brought peace of mind. My portfolio is now better diversified, offering more protection against potential downturns.
This experience has been a valuable lesson. It's a stark reminder that chasing high returns fueled by greed can lead to unbalanced portfolios. While Tesla continues to be a company to watch, for now, I'm prioritizing a diversified approach that prioritizes long-term stability.
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