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Maybe you should buy TSLA stock instead of a M3?

Discussion in 'Model 3' started by insaneoctane, Jun 24, 2017.

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  1. insaneoctane

    insaneoctane Member

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    In 2010, potential roadster buyers had a choice:
    1. Buy a base roadster for $110k
    2. Buy TSLA stock at $17 per share
    I don't know how much the roadster is worth today, but $110k/$17 = 6,929 shares which is worth $2.5M today. It's kind of sad that an early adopter is financially punished for buying the product instead of the stock!

    Anyway, past yields are not necessarily indicators of future results, but maybe you should buy stock instead of a M3.....
     
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  2. JeffK

    JeffK Well-Known Member

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    I'd like to have my cake and eat it too.
     
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  3. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

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    The people who had the wealth to buy a Tesla Roadster in 2010 generally have enough assets to buy both the car and shares in the company.

    This was not necessarily an either/or choice.
     
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  4. BluestarE3

    BluestarE3 Active Member

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    Unless it's a rare collector's item, buying a car is not meant to be an investment. ;)
     
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  5. S'toon

    S'toon Knows where his towel is

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    My idiotic financial planner talked me out of it. :(
     
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  6. dsvick

    dsvick Active Member

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    What?! No one was "punished". They didn't do anything wrong and no one did anything to them on purpose. Buying stock is an investment buying a car, which is a depreciating asset, is not.
     
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  7. ayelvs

    ayelvs New Member

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    If someone can afford to buy a Roadster, then it is likely they can afford both the Roadster and TSLA stocks.

    It's actually a free Roadster that prints money.
     
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  8. eloder

    eloder Active Member

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    If you live in a box at the side of the road instead of having things like running water, you could earn even more money by buying stock!
     
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  9. sitter_k

    sitter_k Member

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    Most financial planners aren't going to steer you to high risk high return tech companies, they rather not get yelled at than be lavishly thanked, can't say I'd be any different lol
     
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  10. S'toon

    S'toon Knows where his towel is

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    Except he instead steered me to an investment that a lot of money. "You can't get out now, you'll lose money when it goes back up." It never did.
     
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  11. dhrivnak

    dhrivnak Active Member

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    It was for me and I took the car. Do I regret it? NAH
     
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  12. DrivingTheFuture

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    Let me know when u want to sell that car...
     
  13. MXWing

    MXWing Active Member

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    Or buy $10,000 of Amazon stock on IPO.

    Or short TSLA for periods of time and use that to buy a Roadster / Model S

    Or give my money to Bernie Madoff instead of buying a Roadster.

    Or if I knew the strike price of TSLA next Friday, I sell my Model X for half off and get more money making the right call/put? I could empty out my bank account, borrow money from friends, max out my HELOC, etc, etc, etc, etc ,etc ,etc etc, etc ,etc

    This could go endless...

    Better question setup might be:

    I have no need for a car, should I buy a M3 for the hell of it or invest it all?

    Or

    I need a car, what is best bang for the buck if $40k is my price range?
     
  14. DrivingTheFuture

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    I kinda want to invest 20k now and see if it'll be enough to purchase the new roadster when it finally comes out :)
     
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  15. ProphetM

    ProphetM Member

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    This is kind of an apples to oranges comparison because most people don't pay for their car in cash. They get a loan and pay it back over time. This will be especially true of the Model 3. Investing in stocks with loaned money is generally considered to be monumentally stupid.

    I have a tiny amount of shares in Tesla, just to show my support, and it's way up which is nice. It would not be enough to pay for a Model 3 even if I sold it all, but it's all I could afford to do.
     
  16. sandange

    sandange sandange

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    Apples and oranges
    Compare buying a $ 110K Tesla sports car to another $110K sport s car of another brand form the same vintage and compare resale values of today.
    Then compare buying tesla stocks to other automobile company stocks from the same date an compare resale value today .
    You could also have bought and compared $110K of bananas to apples and oranges
     
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  17. Zaphod

    Zaphod Galaxy President (former)

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    I'm kicking myself because I was going to get in at $180 but never did :(

    Anyone have a time machine I can borrow? :D
     
  18. zenmaster

    zenmaster Member

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    In 2001, Shmuel Harlap invested less than $10k in Mobileye. That $10k is now with $1,000,000k - a billion. Woulda, coulda, shoulda.
     
  19. JeffK

    JeffK Well-Known Member

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    I was kicking myself for not investing in 2008, although I had no money in 2008 and could barely afford food (on credit even), so there was that.
     
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  20. Skotty

    Skotty 2014 Model S P85

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    As big a fan as I am of Tesla, I find it hard to recommend buying Tesla stock at this point. It may go higher, but I think it's a bit of a crap shoot at this point, and the buy in price is really high now. When I first bought Tesla stock, it was $30 a share. At that price, an investor could have bought 1000 shares for $30,000. That's a viable investment. But now, even if you could get the same return over again, the price for that 1000 share investment starts at $375,000. The time to invest was back then when it was < $100 / share. It's not nearly as attractive now. People might still make a lot of money on it, but it's I think not as guaranteed and there's a lot more initial investment cash on the line.
     
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