Dave Portnoy, the controversial founder of Barstool Sports, has just made a major move within the stock market. He declared that he has invested in Tesla and purchased some stock (TSLA) for 10 million dollars, betting on the stock maximizing when it falls below $300. Wall Street Bets on Tesla that it will reach $750 by the end of the year, backed by FSD and Robotaxis.
Why Did Portnoy Buy Tesla?
In social media, Portnoy discussed the recent price fall of Tesla as a buy-the-dip. He thinks the stock is oversold and it should go up at least 10% over the next few weeks.
In his words, he says, I am trying to make a million bucks in two weeks.
He does not plan to make a long-term investment; he aims to take short-term advantage of volatility.
Source: pic.twitter.com/1EQSrsanwn
— Muskonomy (@muskonomy) July 7, 2025
What’s Going on With Tesla?
There are several important reasons why the Tesla stock has been under pressure in recent times:
- Declining deliveries: Tesla has recorded a decrease of 11% in the number of vehicles that they deliver this quarter (Q2 2025) relative to the same quarter one year ago.
- Policy changes: An existing U.S. bill eliminated the $7,500 EV tax credit that would be adverse to Tesla sales.
- The politics of Elon Musk: Not all investors are comfortable with the recent interest in the politics turned by Musk, like his new party, America Party.
- Wall Street down: Analysts have turned pessimistic. Others reduced Tesla, on the basis of slackening demand and diminishing regulatory credits.
All these made Tesla stocks drop below $300 in months.
Why This Matters
Portnoy is a controversial investor who is not afraid of making big and brash market decisions. However, a 10 million dollar investment is quite big- even to him. His purchase indicates that he was confident that the fall of Tesla would not last long and that the company would recover soon.
Any action of such a person with such a great audience, who also stands firmly in his opinions, usually attracts attention. A huge number of retail traders follow Portnoy.
Risks of the Trade
Although Portnoy is confident, his step is fraught with great danger:
Tesla could continue to plunge: There are still chances that Tesla does not improve deliveries and Musk does more politics, which would bring the stock down more.
Short-term period: Portnoy anticipates a rebound in two weeks. That is a small margin on such a big gamble.
Not a long-term investment: It is a short-term trade. Unless Tesla makes it out of the hole soon, Portnoy might lose millions of dollars.
Could Portnoy Be Right?
Nevertheless, Tesla is a famous and innovative firm in spite of recent problems. It continues to dominate the EV market and enjoys a good brand name. Given restored investor confidence, with the rise of Robotaxis and an affordable Tesla coming up, Tesla might rebound very soon, and Portnoy may be able to reap high returns.
A 10 percent increase in the price level would leave Tesla at about $325, netting Portnoy $1 million on paper.
