Jul. 31, 2025 11:56 AM ETTesla, Inc. (TSLA) Stock, TSLA:CA StockTSLA, TSLA:CANoah's Arc Capital Management4.82K FollowersSummaryI'm double downgrading Tesla from strong buy to hold due to Musk's distractions and operational risks outweighing prior bullishness.Tesla's growth narrative is undermined by consecutive delivery declines and Musk's political pursuits, which distract from critical FSD and operational execution.Valuation is stretched with a forward P/E over 190x and premium multiples, leaving no margin for error if fundamentals deteriorate further.While FSD and autonomy remain a potential upside, Musk's divided focus and execution risks make me recommend holding or trimming positions at current levels.Co-Authored by Noah Cox and Brock HeiligInvestment ThesisWhile Tesla reported earnings last week that slightly beat expectations, I’m double downgrading shares of Tesla (NASDAQ:TSLA) from a strong buy to a hold. As Musk noted on the call, carThis article was written byNoah's Arc Capital Management4.82K FollowersThis account is managed by Noah's Arc Capital Management. Our goal is provide Wall Street level insights to main street investors. Our research focus is mainly on 20th century stocks (old economy) undergoing a 21st century transformation, but occasionally we'll write on companies that help transform 20th century firms as well. We look for innovations in a business model that will cause a stock to change dramatically.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Noah Cox (main account author) is the managing partner of Noah’s Arc Capital Management. His views in this article are not necessarily reflective of the firms. Nothing contained in this note is intended as investment advice. It is solely for informational purposes. Invest at your own risk.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For You