Where Would you Start Buying?

[sunny-value]

I bought 1000 shares a LONG time ago - not IPO but close enough. Then last summer right before the $420 take out stuff I thought of selling half to take some profits off the table. An old friend who is a money manager professionally had a long talk with me. After that I decided to sell and as luck would have it there was a big spike around then. So I did well. I have not really deployed the money (other than putting some aside for capital gains taxes). Have been thinking about getting back in at some point but the news keeps getting worse. So waiting has been better than getting back in. My question to yall is - when would you get back in and why? Thanks in advance.

 

[Wooloomooloo]

I would "get back in" when Tesla's success story wasn't preceded by 25 "if" statements - right now it's still speculative, and in all senses of objectivity, the company has serious challenges. Musk has stated on several occasions that the company was almost finished last year and the SP was higher and people here just laughed at anyone who considered it could fail. It could have failed, easily, but it didn't.

Now he's basically saying the same thing - if things don't drastically change on the cost side, the company is screwed. When analysts make that comment (which they have been) it's FUD, but when Elon says it...

You said you bought close to the IPO, so what's that, $50 a share or less? Then you sold in the mid-high 300's, so made $300k or a 600% return? Depending on how much that money means to you, purely from an investment point of view, there are safer bets, but you can probably afford to take a gamble too. Crude is heading up, and we might have a war... maybe hedge TSLA with Crude!

 

[TradingInvest]

For those who have large amount of cash to invest, I think they should have a set of sound investment rules, don't go against the rules. Select 5~10 good companies that you like, don't put more than 20% into one stock, but allow the position to grow larger if it works out as you expected. Don't use margin. For those who are not very experienced, don't deal with individual stocks, stick with index.

 

[ACA Man]

For those who have large amount of cash to invest, I think they should have a set of sound investment rules, don't go against the rules. Select 5~10 good companies that you like, don't put more than 20% into one stock, but allow the position to grow larger if it works out as you expected. Don't use margin. For those who are not very experienced, don't deal with individual stocks, stick with index.

Exactly.

Don't fall in love in any one stock, regardless of how much your admiration for the head guy is.

 

[sunny-value]

Thanks. Back when I invested I had the 20% max position rule but I let Tesla ride a long time because I was greedy. Then I got married, it was time to start planning kids and then college funding thoughts so now my rule is no more than 5% in any single stock. 300k is a lot less money than it used to sound like (with the cost of college) but it is not play money to me, its ok to lose 10 or 20k on a spec situation but I should probably put the majority of it into funds for retirement and college now. Maybe I should just think of a totally new idea rather than a previous successful idea.

 

[ACA Man]

A while back, I set the price at $200 as my very first TSLA investment.
Now, I am not so sure about that number.

IMHO, profit generated from sales and sales stemmed from good reputation which in turn is based on excellent CS (Customer Services).
Based on my own experience and from what I can gather here and elsewhere for the last few months, Tesla CS is (once again just my opinion) at the bottom as of this moment.
Naturally, there are others who would disagree and it's ok.
In business, one bad CS experience is one too many and there was (is) quite a few already.

 

[sunny-value]

Yes, the CS and service (plus all that lying about the $420 take out offer) were big factors for me. You're trusting the CEO with your money and customers are trusting him with their safety, their lives, their kids...if someone lies to much you begin to wonder what you can trust. Another good green company is Vestas. I am looking into it and a few others. Solar companies seem to not be as profitable but Vestas has been making money on wind for a long time. I also found some good hydro and other non-carbon energy investment funds, basically they invest in big infrastructure projects and produce steady yields (like Brookfield).

 

[ACA Man]

My temporary next target is $150.

 

[sunny-value]

My temporary next target is $150.

Did you build a spreadsheet model to come up with 150, look at charts...what was the thought process? thanks

 

[Singuy]

When the stock is going up, people are not hesitant to buy, when the stock is free falling..all of a sudden everyone is changing their buy targets. Emotion is high, buy if you're bull, short if you're not. Stick to what you believe in. No idea what the next day may bring.

 

[ACA Man]

Did you build a spreadsheet model to come up with 150, look at charts...what was the thought process? thanks

I actually don’t have any model in mind when that number popped in my head.

I started out with $200 when I first thought about investing in the stock around the time I bought my MS as a CPO.
From my own experience when we took delivery of the car until this day, my hope of seeing Tesla as a premier American as well as EV car company along with my admiration for Elon Musk has been diminishing as time goes by.

As a young(er) entrepreneur, IMO, he had learned the hard way of doing business and had managed to become a very rich person along the way and thus I had hoped that Tesla wouldn’t become one of the American car companies which I had sworn never to buy a car from them again.
Furthermore, seeing Tesla has employed a group of young and energetic people, I’d hoped they’d not fall into the pitfall of ‘who cares’.
Well, I was wrong with my hope and as far as I am concerned, Tesla CS is non-existent.
This can only come from the top, regardless of how they said otherwise.

Concerning Elon Musk personally, he may be smart and rich but he sure can’t right the company.
First off, he should keep his mouth shut and fix their CS problem and not to be bothered with the stock price.
Once their CS becomes top-notch again then people will flock to buy from them.
This, in turn, will boost their sales number way up then the stock price will take care of itself.

To make a long story short, regardless of how I feel about Musk and Tesla, my $200 and then $150 limits is based on my thoughts of what I think the company is worth at a certain time.
This is not based on any articles by any analysts but my own research.
The stock went way up due to some unknown reasons when people started to talk up the stock based on some wild ideas souped up by someone that the stock is worth that much and more.

There’s no solid facts to back up the stock price, in my opinion.