Tesla Stock

[Passport1]

I was meeting with my financial advisor today. He's very knowledgeable and trustworthy. Works for a supermajor investment company; everybody here would recognize. Well he is bullish on tech companies with Tesla being top on his list. His view is that Elon is a genius and is guiding the company to become way more than a car maker. So on his recomendation I bought a boatload of Tesla stock. It pains me to admit this move as most of you know my feelings about this automotive evolution.

Did I do the right thing or should I have stayed true to my instincts?

car.USNews

 

[ArrestMeRedZ]

If the stock becomes extremely valuable, it won't take a boatload of it to become rich.
I agree Elon is a genius, but putting a high percentage of your portfolio into any speculative stock is very risky.
Put in what you can afford to lose, then leave it there. Don't sell half if it doubles, don't put in a stop loss or sell when it loses half of it's value. Just hold on, and if your FA is right you will be rich in 20 years or so.
Edit. I see reading closer you are all in. Up to you, but don't get an ulcer about it. A couple of bad days are meaningless.

 

[Passport1]

you will be rich in 20 years or so

Since I'm almost at the halfway point into my eighth decade of life, two more decades seems like a stretch but thanks for the advice.

 

[ArrestMeRedZ]

Since I'm almost at the halfway point of my eighth decade of life, two more decades seems like a stretch but thanks for the advice.

Ah, you have 10+ years on me. At this stage in my life I will only invest pin money (money I can well afford to lose) into a speculative stock like Tesla. I would suggest if your FA had you put your nest egg into Tesla that advice was wildly inappropriate.

 

[JeffKeryk]

TSLA is a volatile investment. IMO, it can be used to help balance out a conservative portfolio.
To be safe, make sure you have enough other wealth in case TSLA falters. That's how I look at it.

Good luck.

 

[cptbarkey]

He has dismantled Twitter out of spite. I don’t consider that a genius maneuver, but can appreciate having faith in something.

 

[Passport1]

Ah, you have 10+ years on me. At this stage in my life I will only invest pin money (money I can well afford to lose) into a speculative stock like Tesla. I would suggest if your FA had you put your nest egg into Tesla that advice was wildly inappropriate.

It wasn't a nest egg. I bought an equal amount of Eli Lilly pharm to balance the risk. Their new drug Monjaro will become the best selling drug in history once the FDA approves it for weight loss. Tesla and Lilly are two companies perhaps poised for stock stardom.

 

[PimTac]

At what percentage of your portfolio is in Tesla stock?

 

[Passport1]

At what percentage of your portfolio is in Tesla stock?

I'm not sure, maybe 5%-6%.

 

[ArrestMeRedZ]

I'm not sure, maybe 5%-6%.

Wildly appropriate then, sir.

 

[PimTac]

I'm not sure, maybe 5%-6%.

That’s good. There is what is called the 4% rule meaning no more than 4% in any one stock. 5 or 6 percent is not overboard. The main idea is to not put all your eggs in any one basket or stock in this case.

 

[Vercingetorix]

With the Chinese economy tanking, I would be wary of investing in any high flying stocks right now.

 

[BHopkins]

If the stock becomes extremely valuable, it won't take a boatload of it to become rich.
I agree Elon is a genius, but putting a high percentage of your portfolio into any speculative stock is very risky.
Put in what you can afford to lose, then leave it there. Don't sell half if it doubles, don't put in a stop loss or sell when it loses half of it's value. Just hold on, and if your FA is right you will be rich in 20 years or so.
Edit. I see reading closer you are all in. Up to you, but don't get an ulcer about it. A couple of bad days are meaningless.

Personally, I think that ship has sailed and returned to port a few years ago. If one wanted to get rich off of TSLA, the time to have bought was back in 2019 or earlier.

A couple years ago, in hopes of helping his clients weather this volatile time, my financial advisor started using an AI system to manage our stock portfolios. A few months ago, it added a chunk of TSLA to my portfolio, and then a few days later, it bought more. So far, it hasn't sold any of them, which is unusual. TSLA has done well for me so far. But I'm not expecting the sort of growth that TSLA got earlier. It seems to me that it is almost a given, that whenever TSLA is doing well, Elon will say or do something to bring it back down.

 

[ME_Andy]

A big pro for Tesla is that Ford, GM, and Stellantis are struggling with unions. The competitors are also struggling to produce and sell large numbers of electric trucks.

A con for Tesla is that they have been reducing vehicle prices.

To me, it's not a clear Buy nor a clear Sell at this moment. Low $200's is my entry point.

 

[JHZR2]

Personally, I think that ship has sailed and returned to port a few years ago. If one wanted to get rich off of TSLA, the time to have bought was back in 2019 or earlier.

This.

The money has already been made. Tesla’s value is too high for an industrial by a long shot, though that’s really what it is, and tech, if you want to try to price manufacturing that way, is overheated, so…

And I’m not down on TSLA as a company. I would agree theyll continue to do great things in new ways that beat out legacy manufacturers. But it doesn’t mean that their price will fly the way it has in the past. Expectations are already priced in.

 

[BHopkins]

A big pro for Tesla is that Ford, GM, and Stellantis are struggling with unions. The competitors are also struggling to produce and sell large numbers of electric trucks.

A con for Tesla is that they have been reducing vehicle prices.

To me, it's not a clear Buy nor a clear Sell at this moment. Low $200's is my entry point.

For the last several months, a few Tesla locations (Fremont, Buffalo, Reno) have had a fair amount of activity, attempting to organize labor. So Tesla may loose that advantage over their competitors. Or maybe not.

 

[cptbarkey]

Vinfast is also a wild unknown. Tesla will see much more competition in the future from Vietnam, India, China and other countries. You can talk about quality of the product, but frankly Tesla needs work there and cant say much themselves. Tesla is a nogo in my investment book and I live less than 25 miles from their Austin facility and probably have close neighbors who work for them.

 

[alarmguy]

I was meeting with my financial advisor today. He's very knowledgeable and trustworthy. Works for a supermajor investment company; everybody here would recognize. Well he is bullish on tech companies with Tesla being top on his list. His view is that Elon is a genius and is guiding the company to become way more than a car maker. So on his recomendation I bought a boatload of Tesla stock. It pains me to admit this move as most of you know my feelings about this automotive evolution.

Did I do the right thing or should I have stayed true to my instincts?

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car.USNews

I would ask myself some questions.
How wealthy is your financial advisor and where did he make his money?
Did he make it investing other peoples money or did he make it investing his own?
If he made it investing his own money, does he do his job only because he loves his job as an advisor and doesnt need the money being an advisor?

(ok, I just read further where you only invested 5 or 6% into one stock, that is a sane investment, your initial post, I was thinking you purchased a high percentage of your portfolio. I'll tell you one thing, asking this question in BITOG enthusiasts section of EVs maybe better off listening to your advisor. )

As far as Tesla where was he before the stock went up to 70 to 100 times earnings? The stock hit its peak two years ago ($371) and down significantly to $253 today and still at 70 times earnings. Anyway, it's all good, I dont fight the market but not invested in TESLA.
One other thing, Elon is a CEO, he could leave tomorrow or 20 years from now, no one knows. He is an employee of TESLA and has his own personal private companies, Space X Nurolink ect..

 

[DwightFrye]

I bought in to TSLA back in 2019. I already had a fairly diverse portfolio and while I wouldn't consider myself wealthy I owned my home outright and had zero debt so I figured I'd have a comfortable retirement. The amount I invested in TSLA was moderate and at that time I was confident that it had nowhere to go but up and the risk of loss was small.

But let me tell you when TSLA went on Mr. Toads Wild Ride back in 2021 the feelings of absolute elation followed by having my head in my hands while the value skyrocketed and then crashed in the last 18 months were very intense. It is not an investment for the faint of heart.

But I continue to be bullish on the stock, A lot of investment advisors only focus on the EV production and either ignore or are ignorant of Elon's long term goal and vision for other Tesla products. Some "experts" predict TSLA could easily be a $5000 stock by 2030. Others say $2000 by 2025. Personally, I don't think $1000 is out of the question by 2025 if the stars line up and the other business units start producing as planned.

As is historically the case, the bigger the risk the bigger the reward. If you can lose $10,000 or $50,000 it's a good place to park some money if you can sit tight for a few years. But you have to be able to take the loss if something catastrophic happens with the economy.

 

[Passport1]

I just read further where you only invested 5 or 6% into one stock

I went back and did a quick calculation. My Tesla is ~3%. Lilly also 3% so together maybe 6%.