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Is Now The Time to Sell Tesla?

Written By Alexandra Perry

Posted July 3, 2017

Let’s be honest: The future of Tesla is currently resting on the Model 3.

The car is the culmination of Tesla’s 15-year “affordable” car mission, making it the crown jewel of a very expensive electric car empire.

That is why, in the last couple of months, we’ve seen Tesla’s stock price inflate to new highs. 

The Model 3 could establish Tesla in the automobile space. It could also tank them as a company. 

And now judgment day is almost here…

Musk announced on Twitter this morning that the Model 3 will enter production on Friday, reaching the garages of the first 30 customers by July 28th.

And, almost immediately, Tesla’s stock dipped. 

The stock dip reflects the general sense of unease eating away at the Tesla investing community.

Many people will remain committed to Musk until his final breath. But, for other more rational investors, now is the time to either dip out or hold. 

Why The Model 3 is so Important

Since the release of the Model S, Tesla has slowly drummed up criticism.

Many people are quick to point out that Tesla flies under a “socially-conscious” banner, getting government tax kickbacks in the process.

Yet, its cars are only accessible to the wealthy. Both the Model S and Model X scrape $100,000 easily with add-ons.

Musk has been quick to defend his company, saying that the road to an “affordable” electric car has been long and hard.

His logic seems to justify the current high price point of the Model S and Model X. This money is fueling innovation toward an affordable vehicle. 

That is why if Tesla succeeds with the Model 3, it will establish itself as a car company – not a luxury car producer. 

If the car flops, it will initiate the fall of a 15-year pipedream.

What Investors Can Expect

Now it’s time to get down to business. 

If you are a Tesla investor, what do the next 25 days (leading up to the release) mean for you? 

Obviously, we’re in unstable place. Where Tesla moves as a company depends on the Model 3. 

The Wealth Daily editors have published a lot of Tesla content in the last year. Many of our experts give projections on Tesla based on the Model 3. 

If you want to read up on any of those, click below:

For now, remember this.

Tesla is overvalued as a company; Musk himself has admitted as much.

The automaker flew past many of its competitors earlier this year, surpassing the value of both Ford and BMW.

For many, this was cause for concern. 

The company consistently falls short on earnings and deadlines. It produces cars that are too expensive to the immediate market. 

That is why the Model 3 has been so crucial. And it should be treated as a big movement for the company with full investor attention.