Tesla Badge, copied from 2024 Proxy Statement

Sell Your Tesla Dump Your Stock

That was one of the chants at the #TeslaTakedown event I attended in Chicago last Saturday. But selling your Tesla car is not easy. There isn’t much of a market for used Teslas in this area. There’s a similar problem in Boston. And Seattle. It seems to be a world-wide problem. Perhaps Trump will single-handedly create a market for used Teslas among his cult. That would be great, since only a few years ago they were crazy angry about libtards driving electric vehicles.

If you want to sell your Tesla stock, that’s easy. There’s a robust market in the stock. Over 110 million shares traded on March 17. But there is the problem of figuring out how much $TSLA you own, According to the 2024 Tesla Proxy Statement, after Musk, the two largest holders are Vanguard and Black Rock, both huge in investment funds and pension management. If you have a 401k, an IRA, or a pension plan, you most likely own at least a little of the stock of Tesla. It has the 9th highest market capitalization of US stocks,

This site says there are 517 ETFs that hold stock in Tesla.  You probably wouldn’t expect Vanguard Consumer Discretionary ETF to hold Tesla stock. Its largest holding is Amazon at 23%, and it includes MacDonalds, Chipotle, Loews, Booking.com, and similar stocks. The second largest holding is Tesla, at 17%. I do not think of electric vehicles as a consumer discretionary expenditure.

I searched for ETFs with low Tesla holdings for the past year, and almost all of the results were funds with lots of Tesla. There are, of course, investment vehicles that don’t hold Tesla. You could look at industry specific funds like ETFs investing in Pharma or Health Care. But you’d be wise to check the actual holdings. I found some on this site where you can search for several sectors.

If you search for Tesla stock you’ll find plenty of people saying it’s fairly valued, or even undervalued. The Yahoo Finance site says the one year target price is $343. Here’s one that’s not so rosy. if you want to see for yourself, here’s a link to the 2024 10-K. .

Note that the people talking about dumping their Tesla cars don’t take about the car itself, in fact most of them like their Teslas. They’re selling, even at a loss, for other reasons. In the same way, the decision to sell Tesla stock doesn’t necessarily mean there aren’t good reasons to hold it. That decision may nave nothing to do with the fundamentals of Tesla, or its businesses.

The Proxy Statement says that Elon Musk has pledged about 1/3 of his holdings as collateral for loans, probably including loans for the purchase of Twitter.  It seems plausible that the lenders will demand additional collateral or even call the loans if the price sinks dramatically. For example, the current PE Ratio is about 116 at market close March 17. If it were selling at the same PE ratio as the information technology sector, approximately 35 at market close March 17, the price would drop from the current $240 to about $75.

Search for the term Tesla meme stock. It’s possible the chanters have a point.

Share this entry
21 replies
  1. xyxyxyxy says:

    (Bloomberg) 12:32 PM — Elon Musk’s social network X has raised close to $1 billion in new equity from investors in a deal that values the company at roughly $32 billion, according to people with knowledge of the matter — a valuation in line with when Musk took it private in 2022.
    Musk himself participated in the equity raise,…
    Musk regularly turns to the private markets for backing for several of his companies, including SpaceX, which completed a tender offer valuing the startup at about $350 billion, and xAI, which is said to have canvassed investors about raising fresh funding at a valuation of $75 billion.

    Reply
  2. biff murphy says:

    Something stinky in Denmark!
    Tesla is not selling cars, so tell me how this stock can be up almost $10 since yesterday when NO one is buying Tesla’s?
    Tesla
    $235.17
    FINY
    +9.86(+4.38%)
    As of Mar-19-20252:33:07 PM ET“Cantor Fitzgerald analyst Andres Sheppard upgraded Tesla from Neutral to Overweight and maintained a price target of $425 on Wednesday, a day after visiting Tesla’s Austin Gigafactory and the company’s AI data centers”

    And again…

    Reply
  3. xyxyxyxy says:

    OT, I think:

    New Utah law allows state vendors to be paid in gold and silver
    On Tuesday, the state legislature passed a bill allowing government vendors to choose to be paid in gold and silver for the first time in America….The state politicians noted that the legislation is the latest evolution in Utah’s stance in favor of SOUND MONEY….
    “IN UNCERTAIN ECONOMIC TIMES, Utah is providing vendors and service providers with the option to receive payment in gold and silver,” Rep. Ivory said. “This law gives Utahns an alternative to choose how they preserve the purchasing power of their earnings and savings.”

    [my capitalizations]
    https://www.kitco.com/news/article/2025-03-19/new-utah-law-allows-state-vendors-be-paid-gold-and-silver

    Reply
  4. gruntfuttock says:

    ‘Perhaps Trump will single-handedly create a market for used Teslas among his cult.’

    It’s the most perfect irony.

    But maybe they’re just going to use their Teslas for target practice with their military-grade machine guns while huffing fossil fuel fumes. If they were actually going to use them for driving and living that would require – dah, dah, dah – INFRASTRUCTURE. Which needs gubmint to do some shit.

    Reply
      • gruntfuttock says:

        Yes, but it’s already there. Has been for decades.

        My point was really that Trump will say anything and do anything in the moment if it suits him. If he thinks he can get rich off electric cars, he’ll love electric cars, more than anybody ever loved them before. Like turning the White House into a used car lot.

        Reply
    • xyxyxyxy says:

      Since you bring up the military, how come nobody repeats over and over again when they discuss the military, or question his defense chief, WH or military spokespersons, that the Commander-in-Chief has called those that have served (tried to remove some of them from history, including Jackie Robinson), whose lives are in his hands, that is, serving and about to serve “Losers and Suckers”?
      Of course that “may” harm the people of the planet during the time he is in that position.

      Reply
      • RetiredSysEngineer says:

        I was at the Vet Rally on the Natl Mall on March 14th. Lots of the Vets there had that quote on their signs, and many of the speakers also repeated it. Again not much coverage in the Natl Media, but these folks had not forgotten those words.

        Reply
    • PeteT0323 says:

      I went to Polestar’s site and per usual there got a little confused.

      Not that the deal isn’t good, but it’s for a base single motor Polestar 3 on a lease with a cap cost reduction of $15,000 from Polestar plus an additional $5,000 cap cost reduction to trade in you Tesla which you might be underwater on.

      I didn’t bother with the lease details – those things are often hard to dig out – on purpose.

      I like the Polestar 3 (and 4) but they are pricey and not a particularly utilitarian EV at a more reasonable price.

      I’d like to see Hyundai, KIA, or Chevy do something similar.

      Reply
  5. Matt Foley says:

    I hadn’t thought about this until now. I checked; Tesla is 1.62% of my retirement portfolio (S&P 500 fund). I’ll have to think about whether it’s worth the time and effort of changing investments.

    Reply
  6. Matt Foley says:

    Dr. appt. today. Waiting room TV had Fox News on. Kayleigh MAGAny was crying about some bullshit as usual. No way I was going to put up with that. I asked the receptionist to change the channel. Problem solved.

    Have to enjoy the small victories.

    Reply
  7. xyxyxyxy says:

    Alternative to TSLA and other forms of transportation:

    WASHINGTON (Reuters) – Amtrak CEO Stephen Gardner said Wednesday he will step down immediately after more than four years as head of the U.S. passenger railroad, citing concerns about maintaining the carrier’s support from President Donald Trump’s administration.
    “I am stepping down as CEO to ensure that Amtrak continues to enjoy the full faith and confidence of this administration,” Gardner said in a statement.

    Reply
  8. Thomas Paine says:

    TSLA has been massively overvalued for years. GM, Ford and others in the car business trade at a P/E of ~15-18. As noted other tech stocks trade at a P/E of 35. By these measures TSLA is WAY over its real value. It should be worth more like $50-$75 per share – and that is BEFORE the tremendous loss in “good will” Musk has squandered by his illegal and immoral DOGE shit activities.

    I have told my friends to buy put options on TSLA. They have all made real $$$.

    TSLA is valued as a “meme stock” like GameStop, but the Wall Street pros are pushing this one, not the amateurs. Makes you wonder who are the bigger fools.

    Reply
    • P J Evans says:

      I think a lot of tech stocks (of all kinds) are overvalued. I’ve seen way too many stories about companies once valued at $N billion going broke.

      Reply
  9. bgThenNow says:

    I saw someone on line posting a note saying “We buy junk cars” and putting it on a swasticar. I accidentally parked next to one today. I got a scrap of paper out and wrote a note, put it under their wiper blade. “We buy junk cars. 1-800-382-5358.” I’m going to print little flyers and keep them at the ready for any future opportunity.

    One of my friends who bought a Tesla when it seemed like a good idea wants to get rid of it now. Embarrassed to drive it.

    Reply

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.