Tesla stock remains a polarizing investment, with opinions divided on whether it is a good buy. Charles Harris, portfolio manager at O’Neil Global Advisors, describes Tesla as an innovative company that requires patience and a long-term outlook.
He revealed on Investor’s Business Daily’s podcast that he has held a large Tesla position for about four years, especially in non-margin accounts, without selling.
Harris actively traded Tesla during its rapid rise early in the COVID-19 pandemic, when the stock surged due to improving fundamentals and government incentives.
However, Tesla’s stock has been highly volatile since then, making it difficult to hold large positions, especially on margin. Harris admitted that he suffered significant losses holding Tesla on margin during 2022 and has since shifted to holding Tesla shares in non-margin accounts to reduce risk.
Tesla’s stock peaked at $488.54 in December 2024 but then dropped sharply—losing nearly half its value in four months. The decline was partly linked to CEO Elon Musk’s close ties to the Trump administration, which triggered protests and investor concerns.
Additionally, a bearish market phase beginning in February 2025, fueled by tariff uncertainties, worsened Tesla’s stock performance.
After hitting lows in early April 2025, Tesla shares have rebounded about 46%, closing at $341.04, still roughly 30% below their peak. By comparison, the S&P 500 gained about 15% over the same period.
To manage Tesla stock long-term, investors should carefully consider position size and avoid trading on margin, which amplifies losses.
Harris cautions against expecting Tesla to replicate Apple’s growth trajectory, noting that Apple did not experience a prolonged three-year consolidation like Tesla has. He advises following risk management rules over relying solely on a stock’s fundamental story.
Tesla’s future value is also tied to developments in robotaxi services and artificial intelligence, but recent political moves could impact electric vehicle (EV) incentives.
The U.S. House passed a tax bill reducing EV tax credits, which may exclude Tesla and other major automakers that have sold over 200,000 EVs by 2025. This could benefit newer EV companies like Lucid and Rivian but pose challenges for Tesla, General Motors, and Ford.
Market analysts offer mixed forecasts for Tesla’s stock. Some see strong upside potential driven by revenue and earnings growth through 2030, while others warn of near-term downside risks due to tariffs, competition, and slowing sales in key markets.
Tesla’s stock remains expensive by traditional valuation metrics and faces ongoing challenges despite its innovation and market leadership.
In summary, Tesla stock is a high-risk, high-reward investment. It demands patience, disciplined risk management, and a long-term perspective to navigate its volatility and the evolving EV market landscape.
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