I hold 5,300 shares of Tesla at an average cost of $202 USD. My total holding is $1,070,000. The price on 5 May is $170, giving me a loss of $169,000 (SGD 224,000).

The lowest price for Tesla was $155 on 26 Apr. The price had dropped by 17% from $185 prior to the release of the 1@ 2023 results.  Since then, the price had recovered to $170.

The sharp drop in price was due to concern by investors about the cut in vehicle prices during the 1st quarter to improve the sales volume. This resulted in a drop in the margin.

I am still positive on Tesla for the following reasons:

a) In spite of the price cut, Tesla is still selling the vehicles at a profit, as they have a low  production cost. 

b) Tesla had to cut price to boost volume as they are targeting to sell 1,800,000 vehicles in 2023 (an increase of 50% over 2022) in a global economic environment where demand for vehicles have dropped due to a possible recession.

c) Competitors are not able to match the price cuts made by Tesla because they do not have the margin, and any price cut will result in a loss.

d) Tesla has started to increase their vehicle price in April (reversing some of the previous price cuts) and their sales volume had increased significantly. 

I will wait patiently for the stock price to return to my cost of $202 by the end of 2Q (hopefully) and for the stock price to reach $250 by end of 2023. 

Note - this is a personal view. I am not giving investment advice. 

Tan Kin Lian