X, Gen Tres or Hold TSLA

X, Gen Tres or Hold TSLA

One of these scenarios will play out in the next years:

A) Sell all TSLA stock to purchase a Model X in 2016
B) Sell half TSLA to purchase a Gen 3 in 2018, hold the remaining stock
C) Hold all TSLA stock for 30+ years and let it multiply several times before cashing out

Option A and B allow for free cars, but with a high investment opportunity cost. Option C offers massive future growth in return for abstaining from owning a Tesla.

I've never spent more than $25k for a ride, and cars are the opposite of wise investing, so struggling here.

Red Sage ca us | June 23, 2014

All, Half, or Nothing?

It is certainly good to have a strategy. I would suggest... That at a certain multiple of your own choosing... You only take out the amount of the initial investment, plus 20%, plus an additional amount to cover capital gains taxes... Then let the rest 'ride'. Your kids, or grandkids, can get free cars as graduation presents some day. You should pay for your own.





DISCLOSURE: Of course, I am not a lawyer, I am not a financial advisor, I am just some guy on the internet, and you should probably just ignore me entirely, so please, pretty please, with sugar on top, don't like, sue me and stuff.

Tâm | June 23, 2014

After all, once you earn all the profit, what can profit do for you?

Elon said if he wants profit he wouldn't get into a car business.

He also said that "Profits are not our primary goal."

In the last Annual Stock Holder, he was challenged by a stock holder questioning his fiduciary duty to maximize profits.

And what did he do about that challenge? He opened up ALL patents to all companies.

Kramer of CNBC Mad Money calls TLSA "a cult" stock.

The problem is how can you predict 2016?

Are you still going to be alive to spend money on this earth in 2 years?

How do know Elon will still be here by then?

Stocks go up and stocks go down!

Remember TSLA was flying high about $194.23 on 10/01/2013 then it traded down as low as $116.10 next month on 11/26/2013?

Every one is all different. I am not qualified to give you an answer.

You've got to know what you want in life.

You've got to evaluate risks versus benefits.

NetWatchR | June 24, 2014

What I find in most people, myself included, is a lack of commitment. We're more worried about not making the wrong decision instead of just picking a good reason to make any decision.

Just make the best choice you can and run with it. If it's right, great. If it's wrong, you can say, "Well, I made the best choice based on the information I had at the time."

But what if you still don't know which one is the best choice at the time? Guess. That's right: Guess. Pick one and go with it. If you're right, great. If not, you can still stay, "I had no clue what I was doing, but I made a choice and ran with it." Even if you decide to wait, that's still a viable decision.

There will always be a better idea or plan or choice that you didn't make. And that shouldn't discourage anyone from trying something. Instead, it should encourage everyone to try anything.

Iowa92x | June 24, 2014

Red, Tan and Net, thanks for sharing your thoughts.

One nugget of investing wisdom I've gleaned through experience is: It is risky to play it too safe.

Investing in bonds, for example, is not safe, as the small return won't even beat inflation. TSLA was "risky" when I bought, but my version of risk is this: The lowest risk investing portfolio is that which creates the most wealth by the time you need it.

I don't think I would be happy forgoing buying a Tesla in the name of holding TSLA for long term growth. Likely I will hold some and sell enough to cover buying a Gen 3. Once the X is being produced, I may change my mind.

Tâm | June 24, 2014


Sounds good. As NetWatchR explained, it's a good decision :)