Tesla Trading Review — Why I Cut Losses at $180 and What I Learned

This is one of my most painful trades, written to help myself remember.

In 2024, Tesla's stock price dropped to around $160 after a split from its high point. I thought it was cheap, bought in batches, with an average cost of $180. The reasons for buying at that time: FSD (Full Self-Driving) was about to be implemented (as Musk said), Shanghai factory was expanding production, and Cybertruck was starting deliveries. It all looked very promising.

During the holding period, the stock rose to $220, a 22% unrealized gain. I didn't sell because I thought it could go higher. Then Musk started selling stocks frantically to buy Twitter, and Tesla's stock price turned downward. My profits turned into losses, and I held on until $150. I couldn't take it anymore and cut losses at $180. I barely broke even but wasted a year's worth of time.

Looking back, I made three mistakes:

First, over-relying on the CEO's personal charisma. Musk is indeed a genius, but his energy is scattered. One day he's working on rockets, the next on tunnels, the day after on Twitter. Tesla is just one of his many projects. Putting funds into a founder who is "not focused" is very risky.

Second, ignoring the competitive landscape. By 2024, BYD had already surpassed Tesla in sales, and the response to Xiaomi's SU7 was very positive. Tesla's technological lead was shrinking, but its valuation still reflected a "leader." I didn't notice this contradiction.

Third, not knowing how to take profits. When the stock rose from $180 to $220, I should have sold half to lock in profits. But I was greedy, wanting to earn more. As a result, my gains turned into losses, and my mindset collapsed.

Now I set a strict rule for myself: for any position, sell half when unrealized gains exceed 20%, and set a trailing stop for the rest. Although I might miss some big moves, I can preserve most of my profits.

Now, the TSLA price on Gate has returned to over $200, but I haven't bought again. Not because I think it won't rise, but because I know I'm not ready yet. Once I fully digest this lesson and stop being affected by FOMO, I might reconsider. #分享美股交易赢英伟达股票