Tesla’s steep stock decline hasn’t shaken the faith of some retail investors.
Business Insider spoke to three investors who said they already bought the dip in Tesla shares after its huge drop.
Most of them brushed off the $800 billion swoon as an “overreaction” and said they’re holding.
Tesla stock is trading nearly 50% lower than its December peak, but the $800 billion wipeout hasn’t deterred retail investors who say they’re holding through the pain — and that they see the stock’s dramatic decline as an opportunity to keep buying.
Retail investors Business Insider spoke to brushed off the latest sell-off as an overreaction, even as big-money investors grow concerned about Tesla’s EV business and the impact of Elon Musk’s political ambitions and other side projects.
Tesla shares edged up 3% early Friday, trading around $248, but they’re still down nearly 50% from the all-time high of $479.86 in December.
Neil Rozenbaum, a retail investor who first bought Tesla stock in 2019, said he isn’t scared by the recent wipeout. He says he’s well accustomed to volatility and describes the decline as an overreaction from traders.
“I’ve experienced sell-offs before, whether it’s Tesla or another company, so it doesn’t really scare me that much,” he told BI in an interview.
Rozenbaum said he bought around $10,000 worth of Tesla stock last Friday, when Tesla posted its seventh straight week of losses and before Monday’s 15% crash.
But Rozenbaum says he isn’t worried about his bet despite a decline in Tesla sales in recent months.
He’s also bullish on other initiatives the company has in the pipeline. In particular, he’s betting that sales could see a boost this year if Tesla releases a refreshed Model Y.
Asked about Musk’s political activity, which some investors are starting to feel is a liability for the brand, Rozenbaum wasn’t concerned.
It would take a lot for Rozenbaum to sell his stake in Tesla. He won’t consider it unless there’s a significant deterioration in its business, or if Elon Musk steps down as CEO, he said.
“I like the guy, which is 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.”
Fabian Varcianna invested in Tesla for the first time in 2022. He also said he wasn’t ready to give up on the stock. Despite the bearish talk around Tesla’s sales, he’s bullish on the company’s AI endeavors and its full self-driving software, which he believes is ahead of the competition. Critics of the tech “have never done proper research,” he told BI.
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