Tesla (TSLA)

Tesla stock has been on a total downward spiral this year. We're looking at a massive 66% drop.

Back in early 2020, it was sitting around $60, then it absolutely skyrocketed to nearly $400 by the start of 2022! Fast forward to the end of '22, and it crashed down to just $123.

I don't actually hold the stock myself, though I do have about a 1% exposure through some ETFs I own. But man, when you look at a P/E ratio of 160... what on earth was so special about this stock that it was trading near $400 at the start of the year?

steelviper49 said:Tesla stock has been on a total downward spiral this year. We're looking at a massive 66% drop.

Back in early 2020, it was sitting around $60, then it absolutely skyrocketed to nearly $400 by the start of 2022! Fast forward to the end of '22, and it crashed down to just $123.

I don't actually hold the stock myself, though I do have about a 1% exposure through some ETFs I own. But man, when you look at a P/E ratio of 160... what on earth was so special about this stock that it was trading near $400 at the start of the year?

In my opinion.

Most of those gains were driven by retail investors. Out of the top 60 largest US hedge funds, only one even holds a long position in TSLA, and that's a tiny 0.12% of their portfolio. Meanwhile, insiders have dumped $40.26B worth of stock over the last two years, while only buying back $41,448.

The media gives Musk an insane amount of coverage compared to anyone else. So, retail investors—who are obviously watching all that news—start believing that TSLA has some massive technological edge that justifies a 10x higher multiple than its peers.

The real question here is how much of a tech advantage TSLA actually has over the competition, and more importantly, how that’s going to impact margins.