Regardless of Nancy Pelosi’s image as Congress’ leading trader, the Former Speaker has occasionally been noted for making unwise stock market choices.
One of the most prominent instances of the Representative making a failing investment in 2024 is her initial acquisition of Palo Alto Networks (NASDAQ: PANW) shares. Unlike those who might have mimicked the PANW trade, her initial collection of stocks actually left her down about 23%.
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Nonetheless, according to the filings accessible as of September 19, Pelosi continues to retain the entire position in Palo Alto Networks and may, therefore, still gain from the February 12 acquisition.
The same cannot be asserted about her Tesla (NASDAQ: TSLA) investment, as she had liquidated a significant portion of her stake in the electric vehicle (EV) manufacturer – incurring a considerable loss – by late June 2024.
Here’s how much Nancy Pelosi has lost on Tesla
Nancy Pelosi initially acquired up to $6 million worth of TSLA shares in two rounds in 2020 and 2022 via options contracts.
During the first acquisition – completed on December 22, 2020, and valued up to $1 million – Tesla shares were approximately priced at $230.
At the point of the second acquisition – potentially valued at as much as $5 million, dated March 17, 2022 – TSLA stock was trading around $300.
Given the elevated Tesla valuations at the time of Nancy Pelosi’s acquisitions, it is fair to assert she has incurred a substantial financial loss due to the timing of her disposals.
For instance, the Former Speaker may have realized as little as $650,000 upon selling 5,000 Tesla shares on December 20, 2022, as TSLA stock was approximately valued at $130 during that period.
Gains also likely eluded the Representative when she disposed of 2,500 shares on June 24, 2024, with Tesla shares estimated around $182.
The 2024 sale is particularly noteworthy as a copy trader who may have utilized a signal from a Congressional trading monitor would have executed their sale on the reported date – July 2 – at a significantly higher price of about $231.
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Ultimately, it is important to highlight that despite the significant discrepancies between the acquisition and divestiture prices, accurately assessing the losses is challenging since the shares were purchased via call options.
Is it possible for Nancy Pelosi to still profit from her Tesla stock wager?
Although Former Speaker Pelosi has not retained her entire Tesla investment, she might, as with her Palo Alto stock stake, realize a profit.
Such an outcome could occur, provided that TSLA stock manages to regain or even surpass its previous peaks – a scenario that is not completely beyond reach given the numerous Tesla advocates among investors and analysts.
Tesla could see particularly robust growth over the next few years if its forthcoming ‘Robotaxi’ event proves successful and if it accelerates the advancement and deployment of its self-driving technology.
The planned commercial launch of Tesla’s humanoid robot in 2025 could greatly enhance the electric vehicle manufacturer’s transition into a leader in artificial intelligence (AI) and technology.
Nonetheless, the progress that might propel TSLA shares to skyrocket in the coming years in a manner akin to Nvidia’s (NASDAQ: NVDA) trajectory since 2022 is neither assured nor universally embraced.
Gordon Johnson, a market analyst and notable Tesla skeptic, for instance, argues that TSLA stock’s previous high points were the result of extraordinary conditions brought about by global supply chain interruptions during the COVID-19 crisis and that the manufacturer will never again achieve similar stock market heights.
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