I am simply posting this so everyone takes a moment and thinks about the price movement.
I am not even going to guess a top since currently shorts keep buying large amount every day according to volumebot.com
Let's just say something is crazy... either me or....
Nothing crazy about it. Not yet. Not even close.
Here's an exercise for you. Tell me where the top is on this chart:
Let's say, starting at the first of the year you invested about $36,100 and it had more than doubled to over $72,000 by 3/27. Probably time to get out, right? I mean you just made $36,000 in less than three months! But wait! In only a little over a month more it went up to $92,000!
You are really glad you didn't sell but now, yes, now, it really does look like it's topping out. Well, it sags down to $86,000 over the next two days. It looks like the fun is over. Better get out with your profits, right? Because in only 2 days you just lost $6,000. At this rate, all your profits will be gone in only two or three weeks, probably sooner once everyone decides to bail. Right? But then in five trading days you notice it's at $109,900! What good fortune you have had! This has got to be the top! It's crazy! Certainly over-valued. You had better act fast and sell because it's dropping fast. Everyone is bailing. If you sell now you will have tripled your original investment of $36,100 in a little over 3 months! Obviously, it is the RIGHT time to sell, right? Because you have never made $72,000 in such a short period of time. And it's going the wrong direction. Down! This must be the top!
But, dang, you forgot to sell. How stupid of you (obviously it really was the top as it only took four days to go all the way back to $78,000)! You are such an idiot! You just "lost" almost $22,000 in four frickin' days! Maybe you should cash out your $78,000 now before it goes down further and lock in your "awesome" profits. Your wife doesn't want you "gambling" with that much money either. So you sell. You kick yourself for not selling at the tip-top (when it was worth $109,900) but at least you got out with $78,000 which is a heck of a lot more than you started with, right?
OK. The last chart ended at $8 (the dip right below the second "E" from the left). That's right, you sold out your stake for $78,000. Had you held it to the end of the year, another 8 1/2 months, it would have topped out at $1 million dollars!
I'm not trying to say Tesla will appreciate just as fast (it won't, it'll take longer) but this exercise shows the folly of trying to sell at the top. The folly of thinking just because something has appreciated to what seems like an unbelievably high price, that it can't go much higher. The folly of thinking that just because your position declines 20% and you didn't sell it, that you made a huge mistake. All follies.
How fast will TSLA appreciate? Who knows but I've been very impressed with what I've seen of Musk's execution to date.
How far will TSLA rise? I don't know but the addressable markets are absolutely huge (cars, solar, energy storage).
Will the Robo-taxi work and become hugely profitable? I don't know but my investment thesis doesn't depend upon it - it's just the potential frosting on the cake. A very tasty cake, even without the frosting. Personally, I believe it will have some really sweet frosting on it. But I won't be unhappy if it doesn't.
Now that you have asked "everyone here" to "think about the current price movement", maybe you could tell us what YOU think about the current price movement. Buy, sell or hold?
