Why Tesla Stock is CRASHING (And What I Do Next)
Overall Thesis
Bhakdi addresses Tesla and broader growth stock selloff: the drop has nothing to do with Tesla fundamentals, but rather a market-wide rotation and AI-growth selloff. His tactical advice: close leveraged/short-put positions to eat losses rather than take catastrophic risk, but keep the core long-term position intact. Strategic thesis unchanged - Tesla still on track to become largest company on Earth in 2-3 years; expects resolution around Dec 9 Fed meeting.
Narratives
Tesla's selloff has nothing to do with Tesla-specific fundamentals and everything to do with market-wide rotation out of high-growth AI stocks. The previously defined 410-460 channel is gone, pre-market at 385. Strategic thesis unchanged: Tesla on track to become largest company on Earth in 2-3 years. Long-term holders should ignore the drop; tactical traders should take losses on leverage.
Key Arguments
- Selloff is market-wide, not Tesla-specific
- Tesla moves with its high-growth bucket beta (Palantir, SoFi, Hood all hit)
- No serious Tesla catalysts in Q4 so Tesla follows market
- All technical channels broken but fundamentals unchanged
- Tesla is on track to become largest company on Earth within 2-3 years
- Price will very likely go to 1000 next year according to Bhakdi