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When do you sell TSLA?

Discussion in 'TSLA Investor Discussions' started by RABaby, Aug 14, 2014.

  1. RABaby

    RABaby Member

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    And that introduces a very interesting question - or at least interesting to some. When is it enough? When do we sell and make an attempt to start spending? I know most are younger and probably haven't amassed enough to satisfy or meet their needs for the rest of their lives, but at some point, and after one has seen their net worth climb beyond what they can spend in the time they have left, isn't it better to sell and stop looking at the price?

    Perhaps this is a discussion for a new thread, but since you raised the point, I thought I might test the waters and see what people who have made a significant return on their TSLA thought was enough. That doesn't necessarily mean sell everything, but sell enough that the allocation is significantly reduced, despite the fact that one knows the stock will ultimately climb much higher. For some, this is not a slam dunk easy decision. But if you don't have more than you can spend, you probably wouldn't understand. It would also help if you had been frugal, living well below your means all your life. Changing spending habits and lifestyle in maturity isn't that easy. I paid $100K for my S and that hurt, not because I couldn't afford it, but because it was twice what I had paid for any vehicle before. But had I not bought one, I wouldn't have realized the potential of the stock.

    I expect some who invested early in Apple, or Microsoft, or Google have experienced similar thoughts. I know someone who retired early because his father died and left him millions. The son expressed real disappointment that his dad kept his wealth a secret after having grown a fortune with Microsoft stock, but held onto it until he died, without ever enjoying what it could have provided.

    So to be clear, I am not asking how one should spend their money, or what they should do in life. I just am curious if anyone has a point at which they could say, "I have enough, I am outta here." And do you think you could actually set a price and allow it to execute? And if you did, what about withdrawal symptoms? Can one actually leave a stock that provides so much excitement?
     
  2. AlMc

    AlMc 'Senior Moments' member

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    Interesting topic for discussion and Robert will probably move it to a new thread:

    I have a price target set that I believe will allow me to retire. In retirement I do not intend to stop investing, but I will sell what I need to live on: toying with annuity..... to provide known income for day to day and will keep investing (TSLA being at least 50% of that total) to use some proceeds for 'wants not needs'.
     
  3. RABaby

    RABaby Member

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    A couple decades ago I had a target that I hoped to achieve that was based on my past performance. And then reality set in as the market tells every temporarily successful investor when they are being unrealistic. So I reduced my target several times after that. But when I had enough to retire from the "working for someone" world, I left. I was 55 and had achieved enough to live off savings and a pension. I had moderate success in growing my assets in retirement. I had enough, but then TSLA comes along and old targets were realized and they no longer mattered. Now there are new targets, just because. I think that is the problem with goals we achieve in that we need to strive for more, no matter what it is. Why is it never enough?
     
  4. AlMc

    AlMc 'Senior Moments' member

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    OK: Title for the thread: When do you sell TSLA (when is 'enough is enough'?)?
     
  5. RABaby

    RABaby Member

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    Fine by me.
     
  6. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

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    I don't set a price target. I set a company achievement target. Begin to sell TSLA when it reaches the iPhone 4S point: wild popularity in the general public, huge volume seller, and a stock price that cannot seem to fall.

    I believe this may occur in the 2020-2025 timeframe.

    Roadster = original iPhone
    Model S = iPhone 3G
    Model X = iPhone 3GS
    Model 3 = iPhone 4
    Crossover based on Model 3 = iPhone 4S?

    Keep in mind that automotive development and sales cycles are far slower than mobile phone cycles. Lots more can go wrong.

    But if Model 3 and its CUV derivative start challenging sales of Accord/Camry and CR-V, that indicates wide acceptance to me. As the general investors rush in…

    …That's the point to begin an orderly exit. I don't recommend buying in all at once, or cashing out all at once either.
     
  7. DaveT

    DaveT Searcher of green pastures

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    For me personally, funding retirement doesn't play much a role in motivating my investment decisions. So I'm not looking for a certain amount that's "enough" for me.
     
  8. SteveG3

    SteveG3 Active Member

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    I've thought about this since the big move last May, and I actually thought about it today, as I started to think the stock may hit $500 sooner than I'd expected. Last year I figured I'd sell 1/2 my holdings no matter what the future of Tesla looks like at $450, as a) it would lock in having a bigger nest egg than I could really ever see myself going through, including helping family, b) nothing is certain, and as good as Tesla looks there are no "sure things" c) to your point I think, I want to keep my mind open to things other than the adrenalin rush of this stock and a mindset of trying to optimize numbers on a screen, fun as both those things can seem.

    Will I be able to do it? I think I'll be able to imperfectly execute the plan... I can tell you after TSLA got really exciting again in March, I mentally tweaked the plan from selling half at $450 to selling one third around $500. So, while I can't tell you exactly what parameters I'll execute, I do think I'll make a move at some point to free up some mind space for other things.
     
  9. bonnie

    bonnie Oil is for sissies.

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    For me, it's not a number to be achieved - it's a vision. I want to see the mass market vehicle vision realized and I want to see the Gigafactory fully realized ... then I'll consider selling. I'm in for the ride until then.
     
  10. mitch672

    mitch672 Active Member

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    I'm partially retired already, and plan to fully retire next year at age 55. That doesn't mean I'm going to stop working or doing anything, I'll just be able to do what I want. One of those goals is to try and work for Tesla, maybe even as a part time job at a service center (a new one is supposed to open locally). With that said, I can't access my IRA & 401K until 59 1/2 (yes I know about the IRS Substantially Equal Payment Plan), I have a plan to get to that point.. Anyway my TSLA shares are in my IRA account, so I can't really access it until 2020 or so, so I'm not planning on selling before that.. if the stock is doing well, there won't be a need to sell it then either, but I'd probably sell 1/5 per year starting then to lock in the gain, it's not taxable until I start withdrawing the money.
     
  11. Zythryn

    Zythryn MS 70D, MX 90D

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    I plan to sell, only to fuel another goal of mine.
    Most likely to build my Net Zero home :love:
     
  12. v12 to 12v

    v12 to 12v Active Member

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    I bought to help support the mission. I can't see selling until the mission is accomplished and the stock becomes a long term below average performer in my portfolio.
    Very long term. I held the stock for well over a year before it even budged.

    I still try to acquire more on dips. I wouldn't dare try to time the market or call the bottom and top. News comes out when you least expect it.

    I tinker with options but it is just so that I can buy more shares.
     
  13. TSLAopt

    TSLAopt Active Member

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    I am planning to wait until 1000 stock price which I think is 3-6 years away.
    I may not sell stock at that point and may just start selling OTM covered calls on a good portion of my shares to generate income.

    Even if my shares get sold from being assigned on some covered calls I'd still like to hold on to a chunk of stock long long term to collect dividends eventually as I think Tesla's growth will one days low down enough to start paying dividends.
     
  14. emupilot

    emupilot Member

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    I will sell when I don't think TSLA is a very good investment anymore. I think I have a number of years before I have to worry about that. In the mean time I keep TSLA a small enough fraction of my retirement so if it did somehow crash I could still retire in relative comfort from my index fund investments. Within those constraints, there is no such thing as enough profit where I would walk away.
     
  15. Chickenlittle

    Chickenlittle Active Member

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    I have similar approach to be in tesla for long time but when I think price getting too high sell my options and buy stock. Can still participate if price higher with the stock but with a drop not hurt nearly as much as if I held options. When stock low enough will go back into options. I am still in options now but getting close to converting again. I have a price in mind but not to share
     
  16. mibaro2

    mibaro2 Member

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    My initially thought when I bought TSLA was to support a company that has a complete solution to EV adoption.
    I believed in its vision and if I didn't support them, who would. (this logic also involved buying a model S ).
    I think the stock has a long way to go, but will sell on occasion and buy on the dips.
     
  17. Chickenlittle

    Chickenlittle Active Member

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    Buying or selling unless on initial or secondary offering is investing but not really supporting company. Your dollars coming or going from another investor.
     
  18. Johan

    Johan Took a TSLA bear test. Came back negative.

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    If this is the case, the only reason to sell off part of, or all of your holdings, would be either because you need the money to spend or that you have another investment idea that you think will give better ROI. For me selling will be gradual and influenced primarily by when I feel most of the high-growth potential in TSLA is over, which is not a price target but as others have mentioned more related to the maturation process of Tesla and the EV business as a whole. When EVs become the norm I'll probably have moved on, if Tesla does not have a large battery storage business.
     
  19. Robert.Boston

    Robert.Boston Model S VIN P01536

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    Yes and no. Clearly the dollars flow just as you say, to another investor. But the effect of buying and holding shares is to increase the stock price. High and rising stock price gives Tesla the ability to raise subsequent rounds of capital more cheaply, as well as to hire great employees with the lure of stock and option plans.
     
  20. mibaro2

    mibaro2 Member

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    Good point. I guess I didn't look at it like that at the time. Anyway, Tesla got my money when I bought my S.
     

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