Getty Images; Jenny Chang-Rodriguez/BI

Despite Tesla's significant drop in stock price, some individual investors remain optimistic.

In conversations with Business Insider, three investors mentioned that they took advantage of the decline in Tesla shares to make purchases even after the substantial fall.

They viewed the $800 billion decrease as an exaggerated reaction and expressed their commitment to holding onto their investments.

Although Tesla's stock is nearly 50% lower than its peak in December, retail investors are undeterred by the substantial loss and view the decline as a chance to continue investing.

While big institutional investors are becoming worried about Tesla's electric vehicle business and Elon Musk's outside interests, the retail investors BI spoke with downplayed the recent sell-off, considering it an overreaction.

Tesla's stock saw a 3% increase early on Friday, trading at around $248, but it remains significantly lower than its all-time high of $479.86 in December.

Neil Rozenbaum, a retail investor who purchased Tesla stock in 2019, remains unfazed by the recent decline, attributing it to normal market volatility and exaggerated reactions from traders.

Despite Tesla's consecutive weeks of losses and a 15% drop on Monday, Rozenbaum invested around $10,000 in Tesla stock last Friday. He is optimistic about the company's future, especially anticipating a boost in sales if Tesla releases an updated Model Y.

Regarding concerns about Elon Musk's political involvement potentially impacting Tesla's brand, Rozenbaum expressed no major worries and stated he wouldn't sell his stake unless there were significant business setbacks or if Musk stepped down as CEO.

Another investor, Fabian Varcianna, who invested in Tesla for the first time in 2022, also remains bullish on the company. Despite concerns about Tesla's sales, Varcianna is optimistic about Tesla's artificial intelligence projects and self-driving software, believing they outperform competitors. Varcianna dismissed critics of the technology as lacking thorough research.