That's pretty funny. He's addressing TSLA investors as if we all sold at $800 or $900. I mean, we can't "jump back in" if we still have our original positions. At least that's the impression he's trying to create (that we all sold during the two day drop).
There's no way to tell if we drop significantly lower before making new highs. Normal volatility and time suggest we probably will, at some point, touch prices maybe around $100 lower. On the other hand, we may not.
Stock momentum is not like momentum in classical physics in which once forward momentum has been stopped, there is no momentum left. With stocks, momentum is caused by human factors and a lot of eyes have been opened recently. So, it's not a given we will go a lot lower which is why I'm not selling at $748. I've ridden a lot of stocks down and back up to spectacular new highs - it's just the way it works.
TSLA's all-time closing high is $887.06. Currently $748.96, a difference of $138.10 or 18.4% off the high.
Look at this QCOM chart from the beginning of Qualcomm's 1999 run. On April 19th the price had dropped 21.4% off it's all-time high that was set 3 days trading days previous, April 14th. Since the shares had
nearly tripled since the beginning of the year, many believed the stock had topped out. That this was the "blow-off top". But then, only two days after dropping 21.4% from April 14th all-time high, it went on to make a new high where it continued to climb for the rest of the year, eventually reaching over 8 times the valuation of it's April 14th high. Yes, it did decline for a few years after it's grand all-time high when the tech bubble burst, but it never retreated as low as its original all-time high of April 14th. That's an important point. Anyone who sold during that April high (or shortly after) never had a chance to buy it back for less. And they missed all the gains to the true end of the year top (actually in January).
View attachment 508714
My point here is not that I expect TSLA to mimic QCOM, I don't. It's simply that when everyone thinks there was a blow-off top, a top that was so crazy over-valued that it couldn't possibly do anything but continue to go down, it just might keep going up. And up. Also note that this chart has more than one big "gap up" that never got filled.
There are many other stocks that provide examples of this, I'm only using Qualcomm because I participated in it and am familiar with how so many people assumed it couldn't continue to climb after nearly tripling early in the year and then dropping so sharply and quickly. People were giddy at that point that they had nearly tripled their value since the beginning of the year. I held on and became a multi-millionaire before the year was finished. Again, I really don't expect that to happen here, that quickly. The point is that stocks can fly higher, much higher than anyone thought.