April 16, 2025
Smart investors know that knowing when to sell is just as important as knowing what to buy.
While most financial media focuses on stocks to purchase, we look for companies facing serious problems that might make them worth selling. These aren’t just stocks that are temporarily underperforming – they’re businesses facing real challenges with their operations, finances, or that are simply overvalued.
We don’t make recommendations based on short-term price movements or news headlines. Each company on this list has been carefully analyzed using multiple factors that often predict significant price drops.
Good portfolio management means both buying and selling at the right time. Often, the best decision is to move your money away from troubled positions before problems show up in the stock price.
Current Sell Candidates:
Tesla (TSLA)
Tesla’s downward trend continues with shares dropping 7.14% on Thursday as investors reacted to President Trump’s decision to raise China import tariffs from 104% to 145%. This latest decline brings Tesla’s year-to-date losses to 39% and puts the stock 48% below its recent peak. These higher tariffs come at a bad time for Tesla, which has been dealing with slowing sales, increased competition, and concerns about CEO Elon Musk’s political activities potentially hurting the brand’s appeal to its traditionally progressive customers.
Despite this significant correction, Tesla’s valuation still seems disconnected from its actual car business fundamentals. The stock trades at about 95.5 times this year’s expected earnings and 7.4 times expected sales – suggesting investors are still pricing in aggressive growth that looks increasingly unrealistic. With a market value of $876 billion despite worsening performance, Tesla continues to be valued as if revolutionary new business lines will appear soon, rather than on current financial reality. The company’s 17.86% profit margin, while better than traditional carmakers, has been falling as price competition increases in key markets.
The very high trading volume of 180.7 million shares versus the 106.9 million average shows large investors are rethinking their positions. While supporters point to potential robotaxi services as a future growth driver, the timeline for meaningful revenue from this initiative keeps getting pushed further into the future. The stock’s current trading range of $239.33-$262.48, while above its 52-week low of $138.80, appears likely to fall further as market sentiment shifts from growth-at-any-price to fundamental valuation metrics. For investors still holding positions, the combination of high multiples, worsening China relations, and weakening core business suggests now may be a good time to reduce exposure.
Intel (INTC)
Intel faces a significant new threat to its already troubled recovery efforts as news about CEO Lip-Bu Tan’s extensive Chinese business connections triggered a 7.62% stock drop on Thursday. According to a Reuters report, Tan has invested in hundreds of Chinese companies through his investment firm Walden International and two Hong Kong-based holding companies, with some investments connected to entities linked to the Chinese military. Most concerning was Tan’s previous seed investment in Semiconductor Manufacturing International Corp. (SMIC), China’s largest chip foundry and a major supplier to the Chinese military that remains under U.S. sanctions.
The timing of these revelations is particularly bad for Intel, which has seen its market position weaken substantially over the past several years. Trading at just $19.89, down from its 52-week high of $37.67 and approaching its low of $17.66, the stock has lost significant value as the company struggles with manufacturing delays, market share losses to AMD, and questions about its strategy. Despite these challenges, Intel still has a substantial $94 billion market value that seems increasingly difficult to justify given its performance and new leadership concerns.
The exceptionally high trading volume of 128.8 million shares versus the 109.2 million average suggests large investors are quickly reassessing their positions. While Intel’s 32.66% profit margin provides some cushion, its small 1.16% dividend offers little compensation for increasing risks. Given the semiconductor industry’s importance to national security and heightened U.S.-China tensions, Tan’s Chinese business connections could potentially complicate Intel’s relationships with U.S. government customers and its ability to receive federal subsidies under the CHIPS Act. With regulatory scrutiny likely to increase and Intel’s core business already under pressure, investors should consider reducing exposure before these leadership concerns potentially derail the company’s recovery efforts.
Boeing (BA)
Boeing faces growing challenges as trade tensions increase, with the stock falling 3.39% on Thursday despite the previous day’s tariff-pause rebound. While President Trump implemented a 90-day pause on most new tariffs, the base 10% tariff on nearly all imports remains in effect, and Chinese import tariffs have been dramatically increased to 145%. This uncertain policy environment creates multiple problems for an aerospace manufacturer already struggling with production issues and regulatory scrutiny.
The financial implications for Boeing are particularly concerning given its already difficult margin situation. With a negative profit margin of -2.94%, the company has no buffer to absorb rising costs from tariffs on raw materials like steel and aluminum, or the inevitable price increases from suppliers facing similar pressures. Trading at $155.37, down from its 52-week high of $196.95 but still valued at a substantial $121 billion, Boeing appears significantly overvalued considering these margin challenges and the likelihood of further earnings deterioration as tariff impacts flow through its supply chain.
The company faces multiple tariff-related threats: increased production costs, reduced competitiveness versus European rival Airbus as reciprocal tariffs make Boeing aircraft more expensive abroad, supply chain disruptions (shown by supplier Howmet Aerospace already declaring force majeure), potential order delays as aircraft purchases become political bargaining chips, and the risk of cancellations if global economic growth slows. With trading volume elevated at 10.3 million shares versus the 8.7 million average, institutional investors appear to be reassessing exposure to these multiple risk factors. Given Boeing’s ongoing operational challenges, tariff vulnerabilities, and negative margins, investors should consider reducing positions before these problems fully show up in upcoming quarterly results.
Bottom Line
This week’s featured companies show the far-reaching effects of escalating trade tensions, particularly with China. Boeing’s negative margins leave it especially vulnerable to tariff-caused cost increases, Intel’s new CEO faces potential conflicts of interest that could complicate government relationships during a critical recovery period, and Tesla’s still-high valuation seems increasingly disconnected from business realities as China tariffs threaten its global operations. In each case, the market’s initial reaction appears to be just the beginning of a potentially broader reassessment as these complex challenges unfold in the coming quarters.