Why would people by TSLA at $650?

[MaxPowers]

Question is simple. Why would anyone buy Tesla at this price? The people that made money bought the stock way back so they are not going to 5x the stock at this price. Most of these buyers are probably not long term investors otherwise the stock wouldn't have dropped after battery day.

My guess is all these people are spec investing just so they would sell it immediately after S&P 500 starts buying the stock.

 

[Rockster]

Um, have you seen the bullish ratings on TSLA recently? I’m sure some are buying now for a quick profit, post S&P, but many people, including myself, are hanging on for the long haul. I’d recommend to anyone that they buy in now, but only if they’re comfortable with a long term hold and can endure the volatility in the interim.

 

[Spacep0d]

Here I am, 10k at Fidelity and ready to invest, but I'm not sure if I should buy at $650 tomorrow knowing that it will probably go higher. But, I would love to buy lower. Trouble is that what I want and where the stock is at are two different things. Do I buy now? Do I buy half now and wait it out past the 21st to buy more? Do I wait until next year?

I'm honestly torn as to how to proceed. I am TSLA long so if I buy and the stock tanks, I'm in it for the long haul anyway and I buy the dip. If it keeps shooting up and splits I will be glad I bought now. So, yeah...decisions!

 

[roblab]

Again, if you're planning on making short term money, this is not what stocks are for. Buy for long term, hold your breath, don't get itchy, and one day you'll wake up finding that the stock has 300 times more worth and you can afford pretty darned much anything. But, for me, that took fourteen years.

There's no reason to feel that Tesla will drop like a rock, and quite a bit of evidence to believe it will go quite a bit higher.

 

[Rockster]

I made the grievous error of selling my TSLA when the factory shutdown was announced earlier this year, expecting to buy back in at a huge dip that seemed certain to occur. The huge dip never happened and I kept waiting for the “right time” to buy back in.

By the time I realized that the only big dip I was going to see was the dip I was seeing in the mirror, I bought back in at a substantially higher price, effectively cutting my holdings in half. I will always regret my decision to temporarily abandon my plans to hold long term in an attempt to be clever.

I’m thankful for what TSLA I have now, but there will always be that little voice inside, reminding me that I have half of what I had in April, all because I tried to be clever with timing the most volatile and unpredictable stock in the market.

If you believe in what they’re doing, you’re okay with volatility, and you’re in it for the duration, remember the Nike slogan and just do it.

 

[Spacep0d]

I made the grievous error of selling my TSLA when the factory shutdown was announced earlier this year, expecting to buy back in at a huge dip that seemed certain to occur. The huge dip never happened and I kept waiting for the “right time” to buy back in.

By the time I realized that the only big dip I was going to see was the dip I was seeing in the mirror, I bought back in at a substantially higher price, effectively cutting my holdings in half. I will always regret my decision to temporarily abandon my plans to hold long term in an attempt to be clever.

I’m thankful for what TSLA I have now, but there will always be that little voice inside, reminding me that I have half of what I had in April, all because I tried to be clever with timing the most volatile and unpredictable stock in the market.

If you believe in what they’re doing, you’re okay with volatility, and you’re in it for the duration, remember the Nike slogan and just do it.

Great story and insight, thanks!

 

[Spacep0d]

Again, if you're planning on making short term money, this is not what stocks are for. Buy for long term, hold your breath, don't get itchy, and one day you'll wake up finding that the stock has 300 times more worth and you can afford pretty darned much anything. But, for me, that took fourteen years.

There's no reason to feel that Tesla will drop like a rock, and quite a bit of evidence to believe it will go quite a bit higher.

Good points. I'm in for the duration. Put in an order with 10k! Thanks for that.

 

[gigawatt1010]

This time last year, the stock is around $400 IIRC. Since then, it went all the way up to over $2k, split 1:5 and now starting to rise again. It seems like sky is the limit. I was fortunate enough to buy when it was around $170. It was a gamble then, but I believe in Tesla’s mission so much that I bit the bullet and drop a sizable (to me) investment. I’m long on TSLA as I bought more a few weeks ago when it was in the low $400s.

Moral of the story, this is not a quick buck stock. If you believe in its mission and recognize that the future is what their vision is - go in...the water is warm.

 

[MXWing]

Question is simple. Why would anyone buy Tesla at this price? The people that made money bought the stock way back so they are not going to 5x the stock at this price. Most of these buyers are probably not long term investors otherwise the stock wouldn't have dropped after battery day.

My guess is all these people are spec investing just so they would sell it immediately after S&P 500 starts buying the stock.

Why would you get Amazon at 500, 800, 1000, 2500?

Of BRK.A at 7100? Getting in at 250,000 even would have been nice gains.

Maybe you need to go find some meme dollar stocks so you can get 5000% returns overnight on call options.

 

[Tam]

...Why would anyone buy Tesla at this price?...

Index funds, ETFs...have no choice and have to buy TSLA whether they want it or not at any price when it's time to add to the S&P500 in one bolus and not gradual installments.

The price might be high right now but this is before the dilution of the upcoming $5 billion capital raise. That means it's still more valuable than the upcoming dilution.

 

[MaxPowers]

Here I am, 10k at Fidelity and ready to invest, but I'm not sure if I should buy at $650 tomorrow knowing that it will probably go higher. But, I would love to buy lower. Trouble is that what I want and where the stock is at are two different things. Do I buy now? Do I buy half now and wait it out past the 21st to buy more? Do I wait until next year?

I'm honestly torn as to how to proceed. I am TSLA long so if I buy and the stock tanks, I'm in it for the long haul anyway and I buy the dip. If it keeps shooting up and splits I will be glad I bought now. So, yeah...decisions!

On my shares that I will hold for 20+ years I bought all of them when they were around $300 pre-split. I really couldn't get myself to by more shares of Tesla after it jumped to 800 so instead I started buying smaller EV companies like Arcimoto. Depending on what you goals are, you could give your money to smaller EV companies. You're are more likely to have your stock 10x than your Tesla stock would (I could be very wrong here). You would also be helping the EV movement more by investing in the smaller guys.

Zac and Jessi made some videos of other EV companies.