The Rise and Fall of Tesla... And Why You Should Care About It

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. The Rise and Fall of Tesla… And Why You Should Care About It By Nomi Prins, Editor, Inside Wall Street with Nomi Prins A product of Elon Musk’s genius… A “tech on wheels” giant… A stock market behemoth. For many, the name Tesla brings to mind all those things and more. And it’s no wonder. Tesla (TSLA) has been a bona fide standout amongst the biggest companies. In 2022, it became the most purchased stock in the world. It surpassed Apple to become the number one favorite for retail investors. And yet, the carmaker ended the year down almost 70%. That made it the worst performer among major companies in the S&P 500. Today, I’ll unpack Tesla’s meteoric rise… why the stock is now in free fall… and what you can learn from it if you have any money in the markets. Recommended Link [Mainstream panic: Americans to miss $150 trillion opportunity?]( [image]( What if America’s next crisis looks nothing like the last? Right now, investors are looking on as supply chain woes lead to higher prices and shortages… Higher interest rates are slowing the housing market… And job losses could be on the horizon. But renowned economist, Nomi Prins, has found a story the media seems to be missing. She says, “If you’re getting the bulk of your information from the mainstream financial media, you could soon miss out on a historic transfer of wealth happening right under our noses.” In other words, the media is only reporting on part of the story – and it could cost you dearly. [Go here now to see how you can prepare for a $150 trillion shift Nomi sees coming in the months ahead.]( -- Making a Market Darling 2020 was a great year for Tesla investors. The carmaker delivered a 720% return, as you can see in the chart below. (For comparison, the S&P 500 returned 17%.) [Chart] A hypothetical $10,000 investment into Tesla on January 2, 2020, would have netted you $82,000 by year-end. 2020 was also the year Tesla became the largest company by market capitalization ever added to the S&P 500. It went on to lead tech stocks to their record highs through 2021. This wasn’t because Tesla had become a money-printing machine. Yes, Tesla did deliver an impressive $35 million to the bottom line in 2020. But that was its first profitable year ever. [Featured: Bear Market Expert Reveals His #1 Stock for 2023]( In fact, it lost $862 million in 2019 and about $1 billion in 2018. That’s despite selling more cars than in the two prior years combined. And yet the market bid up Tesla’s stock price sky-high. It also helped that Tesla had recently announced expansion plans to China and Europe… As well as two long-awaited cars: the Model Y crossover SUV and the Cybertruck pickup. But there were outside factors at play, too. For example, “no fee” trading platforms exploded in 2020. Platforms like Robinhood gave young people an easy, cheap way to invest. And then there was Elon Musk himself. The Tesla CEO made headlines in September 2021 when his wealth rose above $200 billion. Musk became the richest person in the world. At his peak in November 2021, he was worth $340 billion. The media couldn’t get enough of him, and he even went on Saturday Night Live. Recommended Link [$19 Makes Your Trading Bulletproof? (From The Man Who Doubled His Money 12 Times in 2022)]( [image]( “My name is Jeff Clark. For the last 38 years I’ve used one of the world’s most controversial trading strategies to profit during any market. Recommending ‘double your money trades’ 10 different times in 2008… 7 times in 2020… And 12 times in 2022. REGARDLESS of a bull OR bear market… And after managing money for 100 of California’s wealthiest CEOs, athletes, and celebrities… Training over 1,000 people to become licensed stockbrokers – many of them joining mega-firms like Merrill Lynch or Paine Webber. And predicting the 2020 & 2022 crashes weeks in advance… I am now revealing the entire strategy, a 10-second demo, and even sending you the trade alerts EVERY single month… for just $19. No hidden costs, no B.S. [Click here]( before this special offer is taken down.” [Click Here to Get The Details.]( -- The Twitter Distraction But nothing lasts forever. In the last 12 months, Tesla shares have plunged more than 62%. You can see this collapse in the chart below… [Chart] By comparison, the S&P 500 is down 13% over the same time. And Musk is making headlines again… But this time, in a class-action lawsuit over his “funding secured” tweet from 2018. Looking back, Tesla was a victim of its own success. When a stock is priced to perfection, it has nowhere else to go but down. But there was more to the story, too… In April 2022, a Securities and Exchange Commission (SEC) filing revealed that Musk was investing in Twitter. He started buying in January, and by March, he was the largest shareholder. Then, Musk sold $8.5 billion worth of Tesla stock. His reason? To fund his takeover of Twitter. Tesla investors didn’t like that, and the stock tanked 35%. Musk promised he wouldn’t sell more of his Tesla shares to finance anything else. But since then, he’s broken that promise many times. [Featured: Nomi Prins: “What I said on Fox Business…”]( Just weeks ago, Musk sold more Tesla shares. Overall, he sold almost $40 billion worth in 2022 alone. Once again, Musk said he wouldn’t sell any more shares of Tesla for at least 18-24 months. But investors are skeptical. They also feel that Twitter has become a distraction for Musk. Instead of building Tesla, he’s caught up in the Twitter drama. All the while, the carmaker faces worries about the economy and mounting competition from rivals. And with the Fed raising rates, investors would rather put their hard-earned cash into something less risky than Tesla. Recommended Link Market Wizard who predicted all indexes would be negative in 2022 shares shocking new forecast: [“Prepare for Five Years of Famine”]( [image]( [Click here for the name of the one ticker you need to protect yourself.]( -- Be Skeptical of Rockstar CEOs Tesla’s meteoric rise was based less on fundamentals and more on the belief that it was going to achieve amazing things. A lot of that revolved around the genius and allure of Elon Musk. Yes, the billionaire entrepreneur was instrumental in propelling Tesla’s stock to record highs. But now, he’s also proving to be a point of failure in its story. Musk does still own 13.4% of Tesla. But it’s also about optics, and for the reasons above, those aren’t great right now. That’s why I’m not a fan of rockstar CEOs. Personality can only take you so far. And if you have an organization built around one person’s vision and charisma, their mistakes can prove quite costly. Tesla shareholders are learning that the hard way. Still, people often ask me if Tesla is a good buy right now. And I do believe it will recover in the long run. But for those looking to buy, I would wait for the dust to settle before pulling the trigger. Happy investing, and I’ll talk to you again soon. Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins P.S. At my strategy session last week, I encouraged viewers to avoid Tesla like the plague. I also gave away the name of a stock to buy instead, which I believe will be a winner in 2023. It’s already up 6.2%, but there’s more potential upside ahead. [If you missed it, you can still catch the replay for a few more hours](. I’ll give you the name of that stock to buy – for free, no strings attached. And I’ll also pull back the curtain on an “all-weather” strategy that Wall Street loves. It can give you the chance to profit from both the market’s winners and losers this year. [Get the details here while the video replay is still online](. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Inside Wall Street Feedback). --------------------------------------------------------------- MAILBAG On Tuesday, [we shared an interview]( with geopolitical strategist Peter Zeihan. In the interview, Peter talks about the coming collapse of China. Responses poured in, including from reader George: As Zeihan said, America promoted the idea of globalization for more than 70 years until Biden decided it was a bad idea. Biden's idea to deglobalize by decoupling with China is a terrible strategy for Americans. China is the world's largest trading nation and the largest output of manufacturing goods. No country can do without imports from China, least of all the U.S. China won't just survive this decade but will thrive and lead the world in GDP growth. – George P. K. But not everyone sees eye to eye with George… George is completely wrong. Our resources and some 45 years' worth of jobs have been sent to China. That’s so China could sell stuff made with our resources back to us. Our country has become much weaker in the last 45 years thanks to the reality of these discoveries. – John F. Meanwhile, another reader weighs in on Peter Zeihan’s prediction that if China survives this decade, it will be a shock… If Peter is correct, the U.S. will be in good shape relative to China provided we maintain our freedoms and capitalistic systems. Moving production onshore and with the help of free trade nations, we should be in good shape with regard to natural resources. The Inflation Reduction Act is a great asset to make sure that a lot more of what we buy is made or assembled in the U.S. – Richard S. Lastly, reader Joyce is glad she joined Nomi’s flagship advisory, Distortion Report. To learn more about it, and to find out what Nomi calls The #1 Stock for the $130 Trillion Energy Revolution, [click here to start your journey]( Nomi is so knowledgeable. I am so glad that I joined her services. She is so good at helping point me the correct way to invest. The liquid energy I feel good about investing in because of Nomi. – Joyce W. Do you agree with John that the U.S. has become much weaker in the last 45 years? Like Richard, do you believe that the Inflation Reduction Act is a great asset to reduce how much the U.S. imports from nations like China? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: The Rise and Fall of Tesla… And Why You Should Care About It). IN CASE YOU MISSED IT… [Nationwide Warning: Gas Stations Are Changing…]( Something is about to happen to your neighborhood gas station. And to as many as 500,000 nationwide. Get in front of this federally mandated nationwide rollout. [CLICK HERE.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [An Insider’s Guide to Making a Fortune from Small Tech Stocks]( [The Trader’s Guide to Technical Analysis]( [The Ultimate Guide to Taking Back Your Privacy]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-681-1765, Mon–Fri, 9am–7pm ET, or email us [here](mailto:memberservices@rogueeconomics.com). © 2023 Rogue Economics. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Rogue Economics. [Privacy Policy]( | [Terms of Use](