Ross Gerber’s Valuable Perspective
Ross Gerber, the President and CEO of Gerber Kawasaki Wealth and Investment Management, renowned for his bullish view on Tesla Inc (TSLA), recently shared essential investing guidance following a trader’s tumult with Tesla stock in 2022.
The Trader’s Struggle
Charles Harris, a portfolio manager at O’Neil Global Advisors Inc., underwent a financial rollercoaster as Tesla’s stock dwindled throughout 2022. By December 30, 2022, Tesla’s price tumbled to $123.18 at market close, reflecting a significant 69% decline from its January 1, 2022, closing price of $399.93.
The Unraveling Factors
The stock’s downward spiral over the year pinpointed pandemic-induced supply chain disruptions, CEO Elon Musk‘s Twitter (now known as X) acquisition, concerns over rising interest rates, and a COVID-19 prompted shutdown of the Shanghai factory.
Contemplating his ordeal, Harris shared in a video on X, “If I have learned anything through this experience, it’s this: If you are going to hold a high-conviction stock that you believe to be a true market leader over a long period of time, it’s best not to do it on margin.”
Investing Prudently
Expressing his thoughts on the incident, Gerber reiterated, “Crazy risk-taking makes no sense. Gambling is not investing.” He sympathized with Harris, recognizing the collective hurdles of 2022, while emphasizing his firm’s avoidance of margin trading.
Gerber urged all investors to seek counsel from financial advisors to ensure informed decisions and safeguard their investments.
Stock Status
Price Action: Tesla shares concluded up 2.5% on Wednesday at $175.66. Nevertheless, the stock has declined by approximately 29.3% year-to-date, according to data from Benzinga Pro.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read More: ‘We Need To Bring This Back!’ Ford CEO Jim Farley Wants To Revive Psychedelic 1970s Bronco
