Despite Nancy Pelosi’s reputation as Congress’ foremost trader, the Former Speaker has sometimes been recognized for making imprudent stock market decisions.
One of the most notable cases of the Representative making a poor investment in 2024 is her initial purchase of Palo Alto Networks (NASDAQ: PANW) shares. Unlike those who may have replicated the PANW trade, her original selection of stocks actually left her down approximately 23%.
US Congress Buy/Sell Signal
Stay updated on the trading activities of US Congress members. This signal activates based on SEC reports concerning all transactions made by US Congress members.
Nevertheless, according to the filings available as of September 19, Pelosi retains her full stake in Palo Alto Networks and may, therefore, still profit from the February 12 purchase.
The same cannot be said about her Tesla (NASDAQ: TSLA) investment, as she had divested a significant portion of her shares in the electric vehicle (EV) company – 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 in TSLA shares in two rounds in 2020 and 2022 through 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 time of the second purchase – potentially valued at as much as $5 million, dated March 17, 2022 – TSLA stock was trading around $300.
Considering the elevated Tesla valuations during Nancy Pelosi’s acquisitions, it is reasonable to claim she has faced a significant financial setback due to her selling timing.
For example, the Former Speaker may have realized as little as $650,000 after selling 5,000 Tesla shares on December 20, 2022, as TSLA stock was approximately valued at $130 at that time.
Revenues also likely evaded the Representative when she sold 2,500 shares on June 24, 2024, with Tesla shares estimated around $182.
The 2024 sale is especially notable as a copy trader who may have followed a signal from a Congressional trading monitor would have made their sale on the reported date – July 2 – at a significantly higher price of about $231.
US Congress Buy/Sell Signal
Stay informed on the trading activities of US Congress representatives. This signal is triggered based on SEC notifications about all transactions conducted by members of Congress.
Ultimately, it is crucial to emphasize that despite the substantial differences between the acquisition and selling prices, accurately evaluating the losses is difficult since the shares were acquired via call options.
Is it possible for Nancy Pelosi to still profit from her Tesla stock wager?
Although Former Speaker Pelosi has not kept her entire Tesla investment, she might, similar to her Palo Alto stock stake, manage to realize a profit.
Such an outcome could be achievable if TSLA stock manages to recover or even exceed its previous highs – a scenario that is not entirely out of reach given the considerable Tesla supporters among investors and analysts.
Tesla could experience particularly strong growth over the coming years if its upcoming ‘Robotaxi’ event proves to be a success and if it accelerates the development and deployment of its self-driving technology.
The anticipated commercial introduction of Tesla’s humanoid robot in 2025 could considerably elevate the electric vehicle manufacturer’s status in the realms of artificial intelligence (AI) and technology.
However, the advancements that might drive TSLA shares to soar in the following years, similar to Nvidia’s (NASDAQ: NVDA) journey since 2022, are neither guaranteed nor universally accepted.
Gordon Johnson, a market analyst and prominent Tesla skeptic, for example, suggests that TSLA stock’s previous peaks were the result of extraordinary circumstances brought about by global supply chain disruptions during the COVID-19 pandemic and that the manufacturer will unlikely achieve those stock market heights again.
Image Source: lev radin / Shutterstock
