I have friends who bought in the 300s and 200s before Elon dumped his shares on them. Young people in South Korea are investing their life savings in TSLA because they believe in the company. My uncle, who is near retirement age, bought TSLA in the 250s. I think you'll have a hard time finding gratitude there. I've been poor and I've been not so poor and let me tell you this: you wouldn't be criticizing us for criticizing him if it was you who lost a butt load of money picking the right company. That's the part that hurts the most. You do your homework and take the risk and the company delivers but somehow you're poorer than before and it's not because the market is irrational but because the CEO is dumping his shares like there's no tomorrow.
The definition of a a speculator is not someone who uses derivatives to take ownership in a company but one who is in it purely for financial gain. AFAIK, KoGuan Leo never sold TSLA or its derivatives for gains. He bought all the way down from 350 and is still holding with us. I could care less if he bought shares or calls as long as he doesn't flip them for profit. Maybe his risk management was inadequate but he's still in it with us and i find it disgusting that some posters here were cheering for him getting margin called.
I sympathise with those who bought shares in the 250s or 300s, especially if that was their first investment in Tesla, but in reality they haven't lost anything unless they sell below those levels. It is the responsibility of each individual investor to make prudent decisions when deciding where to invest their hard earned money. Anyone who's done their homework will understand that Tesla stock is very volatile and should know not to invest money they might need over the next several years. Anything over a shorter timeframe is just a gamble.
The market is being irrational at the moment. Nothing has changed fundamentally with the company. The CEO selling shares doesn't change anything fundamentally and this price action is just a short term reaction.....it's just noise....it doesn't change the long term trajectory of the company in any meaningful way.
Investing in a company such as Tesla should be considered a long-term investment over 5 to 10 years or more. Over a shorter time horizon the stock price can become detached from the company fundamentals and the market can stay irrational for longer than you might imagine. This is not news to those who were invested in TSLA between 2013 and 2019.
People who've invested in Tesla have still picked the right company. The current price action doesn't change that. Nobody knows how long the price can take to recover, but as long as the company continues to grow and the fundamentals continue to get better, the stock price will eventually reflect this.
Emotions are running high right now and during such times it's all too easy for people to react irrationally and make poor judgement calls if they're not careful.
A good investor needs to be able to separate the signal from the noise and make decisions based on whether the long term trajectory of the company has changed or not. I try to think of performance during individual quarters (or even individual years) as just data points on a graph and these can sometimes vary significantly from the long term trend....especially if there are extenuating circumstances affecting results in the short term.....and we've had plenty of extenuating circumstances over the last 2 years. If you have a good fundamental understanding of the company then you can make allowances for one-time or short-term effects and make a judgement on whether the long term trajectory has been significantly affected or not.
Nobody can predict the future trajectory exactly, but with Tesla I don't think it's necessary to do that anyway. The projected rate of growth over the next several years is so great that even if predictions are off by quite a bit, the compounded growth over time is still going to be huge and the value of Tesla as a company is still going to be much higher than it is now.
From my perspective the company fundamentals look stronger than ever and Tesla is positioned to continue growing at an unprecedented rate for many years to come. As such, I intend to continue to purchase shares whenever I can afford to do so (especially when I can get them at a discount).
www.cnbc.com
