Lost faith in the company or its ability to grow? Not on your life. IMO, the ostrich with its head in the sand attitude about the impending death of ICE vehicles demonstrated by legacy automaker chieftains all but assures that Tesla will become a dominant force in the auto industry in the years ahead.
Then why did you sell your stock?
WARNING: WHAT FOLLOWS IS NOT WRITTEN BY ANY KIND OF PROFESSIONAL ANALYST, EXPERT OR ANYTHING CLOSE TO THAT. I'm just a guy with a rather small stock account I like to play with for fun since my big investing days are behind me and most of my assets are managed by a pro.
Deutsche Bank has failed. They're dressing it up with shall we say suspect optimism, but this giant bank is actually being unwound. Over the past three months, the Chinese government has had to step in and take over three large banks that failed in that country. Shipping companies are laying people off and reporting reduced traffic. Even the US Post Office reported a massive loss last week citing declining package deliveries. (Who writes letters any more?). That means online orders are declining. While Tesla is recording record sales, they're declining for almost all legacy auto companies. GM and Ford are reducing capacity and laying off workers. Germany's auto industry doesn't look good. Housing sales are declining; price declines that began in overpriced areas (i.e. San Francisco) are now spreading out to other cities. Late payments and defaults for mortgages, student loans, credit card debt and car loans are climbing. Gold bugs are always ranting about fiat currencies touting the imminent rise of gold prices. Guess what? It's now happening though silver prices are still pretty much tracking along with no significant movement. It's not widely known, but the banks have found a way to get around Dodd Frank to sell derivatives (those damned credit default swaps, CDOs, etc) by selling them in Europe which is beyond the reach of Dodd Frank. In 2008, several trillion in derivatives accelerated the collapse that began in the real estate market. I've seen estimates that banks now have liabilities for half a QUADRILLION in derivative contracts outstanding. In 2017, Trump signed a bill that could possibly result in banks raiding the accounts of depositors to try and remain solvent (senate bill 2511 or something like that).Trump's trade war is exacting a horrific toll on our farmers and soon our consumers and it's now moved into a currency war. Knowing Trump, he is unlikely to back down until it's too late.
The always present dire predictions from the gold bugs have now spread to established banks like Goldman Sachs and Morgan Stanley. I've watched more than one head of economics at UCLA et al predict that recession is imminent. Just last night, I saw one of the chart monkeys who is widely respected say that the market could shortly see a decline similar to what happened when Lehman Brothers failed in 2008.
My financial planner agrees that things don't look good and he's put most of his clients in safe harbor investments for the time being.
IOW, if we're not already in recession globally it will most likely happen soon. I believe in Tesla completely. Musk is right, his products are terrific and what's in the pipeline promise even more growth. I think Musk took on another $2.7 billion in debt this spring "for general operating expenses" despite still having ~$2 billion in the bank is he foresees a downturn happening soon too.
How steep will this recession be? Dunno, but tell you what, I felt a whole lot better that Bernanke, Paulson and Geithner were there in 2008 versus the clowns we have today.
Last week, Elon said he thought Ford might not make it through the next recession. Ford bristled, but where the Seeking Alpha types point to Tesla's $13 billion debt as a sign of looming bankwuptcy, Ford owes around $100 billion. GM is in similar shape.
I sold my Tesla stock because I vowed in 2009 never to get caught with my pants down again. Long term, Tesla will come out on top, but gravity will prevail here is what I think is about to unfold does indeed occur. I moved my accounts from major banks to a member owned credit union years ago. I've paid down my debt excepting the outstanding balance on my MX loan. I've checked and rechecked that my retirement income stream is as secure as possible.
When the market decline as sharply as I think it will, I plan to wait and buy back TSLA after the decline. Even a company with as bright a future as Tesla is not immune to the gravity of an overall sharp market correction.
Will all this unfold as I think? Hell if I know, but that's my story and I'm sticking to it for the time being.
I think long term Tesla is going to wind up as big as Apple if not bigger. I plan to be there to reap the rewards, but for the short term we have problems in River City.