The early TM critics said “buy the car not the stock” … were they wrong ... $17 to $36 per share! Could it now be said “buy the stock not the car” !!! I really don’t need the S until my wife retires (5-7yrs) and we have time to do interstate travel. However, I have a hopeless case of Tesla Addiction and WANT the S now. Her challenge to me is "if you are that much of a believer, keep the money in the stock and delay the purchase." So my rationale to her (having the car now vs holding 2000 shares TSLA …i.e. you can’t do both) is:
1) Jim Cramer says “pigs get slaughtered.” I have already made enough on the stock to pay for most of the options offered on the car (bought and sold shares since the IPO--- currently holding only 400 shares which I’ll sell to cover my battery upgrade).
2) THE MACRO ECOMINIC ENVIORMENT IS WEAK. I think the stock market is in for a 20% correction in the next 3 to 6 months hurting TSLA more so because of it’s high beta (volatility). I need this money to buy the car so that is why I've already taken profits.
3) THE S WILL NEVER BE CHEAPER. Aluminum is currently at a low but could jump with other commodities (not sure if TSLA has a hedge on Aluminum) and inflation (labor and material) will force price increases at a time when Federal and State rebates (depending on election) may go away. Inflation costs could be offset by economy of scale and tech innovation…big unknown. I think TM will price the S just like a “top of the line” computer E.G. Apples's Mac Pro price never comes down … you just get a faster/better performance Mac.
4) GAS LINES. What if Israel bombs Iran? Wait for an hour to pay $7 per gallon (already close to $5 in CA)?
5) ENVIORMENTAL, COST OF OWNERSHIP, SUPPORT OF US MADE/JOBS, AND ENERGY INDEPENDENCE discussed already in this forum.
6) FINALLY … even if I sit in it and go nowhere … it is a piece of art to behold. Sadly, I miss at least a double as TSLA goes to 80 per share in 2018 :(
What to do, What to do ...... help!