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

This is one of the most painful trades I’ve ever made. I’m writing it down to remind myself.

In 2024, after Tesla’s stock price split from its peak, it fell to around 160. I thought it was cheap, so I bought in batches, with an average cost of $180. The reasons I bought at the time were: FSD was about to roll out (what Musk said), the Shanghai factory was expanding production, and Cybertruck started deliveries. It all looked wonderful.

During the holding period, the stock rose to 220, with a 22% unrealized gain. I didn’t sell because I thought, “It can still go up.” Then Musk started frantically selling shares to buy Twitter, and Tesla’s stock price turned downward. I went from profit to loss, and I kept holding all the way down to 150. I couldn’t take it anymore, so I cut my losses at $180. I barely broke even, but I wasted a year of opportunity cost.

After reviewing it, I made three mistakes:

First, I relied too much on the CEO’s personal charm. Musk is indeed a genius, but his focus is scattered. Today he’s working on rockets, tomorrow on tunnels, and the day after on Twitter. Tesla is just one of his many projects. Putting capital into a founder who isn’t “focused” is very risky.

Second, I ignored the competitive landscape. In 2024, BYD had already surpassed Tesla in sales, and after Xiaomi SU7 was released, the response was enthusiastic. Tesla’s technological lead was shrinking, but its valuation still reflected a “leader’s” valuation. I didn’t notice that contradiction.

Third, I didn’t know how to take profits. When the stock price rose from 180 to 220, I should have sold half to lock in gains. But I was greedy and wanted to make more. As a result, I went from profit to loss, and my mindset collapsed.

Now I’ve set a hard rule for myself: for any position, if the unrealized gain exceeds 20%, I sell half, and I set a trailing stop for the rest. Although I might miss some big runs, it can protect most of my profits.

Now the TSLA price on Gate has returned to over 200. I haven’t bought again. Not because I think it won’t rise, but because I know I’m not fully ready. Once I’ve completely digested this lesson and am no longer influenced by FOMO, I may reconsider.

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