TSLA, PLTR, SOFI: Buy, Sell, or Hold? Stock Analysis & Expert Advice

This article discusses the current situation and potential investment strategies for three popular stocks: Tesla (TSLA), Palantir (PLTR), and SoFi (SOFI). It addresses concerns about the overall market's high position and provides insights based on recent performance and future potential.

Tesla (TSLA)

Recent Performance and Influencing Factors

Tesla's stock price has experienced significant volatility, largely influenced by the ongoing "quarrel" between Elon Musk and Donald Trump. These public disputes have caused considerable fluctuations, demonstrating that Tesla's stock price is not solely driven by its fundamentals.

• Trump's Threats: Trump threatened to cancel the $7,500 electric vehicle tax exemption, a crucial incentive for Tesla buyers. He also suggested the company would close without the subsidies and even threatened to expel Musk from the U.S.

• Musk's Response: Despite the conflict, Musk acknowledged Trump's role in resolving the Jashat fire, praising his conflict-resolution abilities on X.

• Delivery Numbers: Tesla's Q2 deliveries totaled 384,122 vehicles, a 13.5% decrease compared to the same period in 2024. While this is the worst drop in the company's history, the numbers still surpassed analysts' expectations and were higher than the first quarter's 337,000 deliveries.

• Market Focus: The market seems to be paying less attention to delivery numbers and more attention to Tesla's future business ventures, such as robotaxis, Full Self-Driving (FSD), and humanoid robots.

Investment Strategy

The decision to invest in Tesla hinges on two key beliefs:

1. Belief in Tesla's Future Business: If you believe in the potential of Tesla's future ventures, the stock holds significant growth potential.
2. Faith in Elon Musk: Musk is vital to realizing Tesla's vision. If you don't believe in Musk's ability to deliver on his promises, investing in Tesla may not be suitable.

Buy-In and Add-In Suggestions:

• Below $300: Consider opening a position if the stock price falls below $300.

• $207 and $204: If you already hold Tesla stock, consider adding to your position at these price points based on your current holdings.

ARK Invest's Investment: Cathie Wood's ARK Invest bought approximately 56,368 Tesla shares, valued at around $17.91 million.

Palantir (PLTR)

Current Valuation and Performance

PLTR has delivered substantial profits, currently at 92% within the analysed portfolio.

Valuation Concerns:

• Trailing PE: 568

• Forward PE: 238

• PEG Ratio: 4.14

• Price to Sales: 104

These metrics suggest that PLTR is currently highly valued.

Investment Strategy

• Large Positions: If PLTR constitutes a significant portion of your portfolio, consider reducing your position to mitigate risk.

• Small Positions: If your PLTR holdings are small, maintaining the position is appropriate.

• Avoid Chasing Highs: Do not invest in PLTR at current levels.

• Entry Point: Consider opening a position only if the stock price drops to $108 or less.

SoFi (SOFI)

Recent Rise and Contributing Factors

SoFi's stock price has recently increased due to several factors:

1. Cryptocurrency Resurgence: The recovery of the cryptocurrency market indicates growth potential for digital assets.
2. Better-than-Expected Profits: SoFi's exceeding profit expectations and positive guidance bolster confidence in its business model.
3. Technical Momentum: Attracts dynamic energy traders and algorithmic traders.
4. Retail Investor Enthusiasm: Increased investment activity from retail investors.

Investment Strategy

• Large Positions: If SoFi now makes up a large portion of your portfolio or you have limited cash, consider reducing your position to balance your investments.

• Avoid Buying at Current Levels: Avoid starting new position at current levels.

• Potential Entry Points:

  • Below $15.5: Consider opening a position if the stock price rebounds to below $15.5.

  • Below $13.8: A more conservative entry point would be below the 120-day moving average at $13.8.

Important Dates

• July 4th: The U.S. stock market will be closed for Independence Day.

• July 3rd: The stock market will close early, approximately three hours earlier than usual (1 PM Eastern Time).