Need Opinion

[Mark H]

I know I shouldn’t take internet financial advice and I’ll take all comments with a grain of salt.

A little background,
I’m a middle class hard working union worker making 65,000 a year. No debt except for mortgage. No 401k but a decent pension of 55% of my wage if I were to retire next year. Otherwise my pension goes up 1200.00 a year for every year I work past my pension.

I’m a truck/SUV person,
I just came into a little money (40,000)
My thoughts were to purchase a Model Y and pay it off by the time the Cybertruck comes out (I ordered the
Tri-Motor) And trade it in for a CT.
Or buy $40,000 in Tesla stock and take the chance that I won’t lose the money and I’ll make enough profit to offset the balance from the trade in.
If the stock crashes My dream of owning a Tesla will vanish.

Thanks.

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[TyPope]

It's all about how much risk you want to assume. Buying a MY and selling/trading it in will surely be worth less than just sitting on the money. But, if you have to be paying on a car anyway, why not a MY? They'll hold their value pretty well if they follow the pattern of the M3. Buying stock could pay off big or could be at a low when you need the money the most.

Opinions are like ... well, you know the rest of that. I think I'd put half into Tesla stock and sit on the other half in some easy to cash out interest bearing account of some sort. Then, maybe that original $20K will have done well with Tesla stock and between that and the $20K in the safe account, you'd be able to buy the CT when available without owing much if any. Again, depends on the amount of risk you want to take.

This is close to where I am right now. My wife's MY has me wanting one of my own and I don't want to wait 2 years or longer to get it! So, I'm weighing the possibility of buying a M3 to sell when my CT gets made... I look at it as a "forced savings account with a crappy negative return" but it lets me ride in a M3 for a year!

-- Decided to just buy some Tesla stock. I didn't get in when it was really low but I also didn't invest any more than I could afford to lose. I don't want all my eggs in one basket, you know. Actually, I bought two sets (just a few shares). One batch, is for the loooooong haul. The other few, well, my hope is that they'll pay for my CT in a couple of years... or at least a big chunk of it.

So, in short, I did NOT get the M3 (or a used MS which I ALMOST went to get last weekend). I'm going to really try to resist that temptation for a couple of years and just live for weekend drives in my wife's car till I get mine.

This and a dollar will buy you... well, not much actually.

 

[kev12345]

if you buy the model y will you be truckless? i wouldn't do it. invest the cash. maybe not all in tsla tho...

 

[OneLapper]

I'm in the same boat. I don't trust my current car to last (without significant repair expenses) until the CT is available and in my driveway (2 - 3 years?).

I asked my financial guy to buy Tesla stock at $564. "Nope, it's going to crash, almost certain". I asked my financial guy to buy Tesla stock at $800. "Nope, it's going to definitely crash, almost certain". I just asked my financial guy to buy Tesla stock at $990. "Nope, it's going to correct, almost certain."

My internet financial advise, forget the model Y, by rule it needs to lose value in the next two to three years, , buy Tesla stock with half your money, money market the balance, and wait for your CT to arrive.

There is no way of knowing what the stock will do. Money can be lost. I do know that if my financial guy did what I asked him to do I'd have doubled my investment.

I plan on getting in on the stock soon. With or without my financial guy's blessing.

 

[OneLapper]

Oh, and don't let your wife touch that money! Been there, done that, divorced her.

 

[VI Tesla]

I asked my financial guy to buy Tesla stock at $564. "Nope, it's going to crash, almost certain". I asked my financial guy to buy Tesla stock at $800. "Nope, it's going to definitely crash, almost certain". I just asked my financial guy to buy Tesla stock at $990. "Nope, it's going to correct, almost certain." - Onelapper

Hillarious.



Of course it's all crystal ball gazing with stocks but I bought in at $800, stupidly missed the Covid $400 drop but all indications show this stock is going to to continue to climb as Tesla does not sit on their hands. Model Y is ramping up (Leno gave it a great review 13th highest trending on YouTube), battery day is coming in September, FSD is around the corner, Tesla Semi starting production, gigaberlin will be ramping up soon, giga/terra austin (maybe?) around the corner with CT, possibly a UK giga/terraplant. Not to mention boring company si hitting news with projects, starlink, etc.
I don't know about you but that's a lot of big news articles to effect the stock in a positive way.

But as others have said it's all risk. Only risk what you're comfortable losing.

 

[ajdelange]

I asked my financial guy to buy Tesla stock at $564. "Nope, it's going to crash, almost certain". I asked my financial guy to buy Tesla stock at $800. "Nope, it's going to definitely crash, almost certain". I just asked my financial guy to buy Tesla stock at $990. "Nope, it's going to correct, almost certain."

Same here so I quietly opened an e-Trade account and bought a few shares.

 

[Geo]

I know I shouldn’t take internet financial advice and I’ll take all comments with a grain of salt.

Tesla has great potential, and for good reason may be worth well over $3000 a share in the future.
But at $1000 a share, today, that is a massive premium to its current reality . . .and its forecast performance for the next 6 to 12 months.

Absolutely Every analyst expects Tesla to announce a loss this quarter about to end in a week !

(Which is nothing special, its quite obvious to every body. It only made a minuscule $16m net profit in Qtr 1, 2020 due to selling ~$350 million in carbon credits to Fiat Chrysler. These are likely to disappear fairly soon when Fiat merge with PSA )


Tesla has never made an annual profit. Not Ever.
Elon is right when he advises “in his opinion the price is too high, (and that at about $701 ).
(Tesla would still be an incredibly successful company with great prospects at $300 a share)

Note : Elon in the Qtr 1, 2020 Earnings call stated no capital raising required in the foreseeable future, 3 weeks later, Viola, capital raising took place !

A number of analysts believe a new capital raising will be required in perhaps the next 2 - 6 mths.

Buying Tesla is obviously venturing into the Stock Market.
The stock market across the board is inflating directly due to Fed action,
(not necessarily intrinsic to the company's performance or prospects.)

It all depends on how well you believe in the Fed’s ability to keep inflating the market ?

Cos the Economy is certainly not remotely correlated with the stock market !

Like Sven Henrich says : “ Congratulations I guess to the Fed . . . Its unprecedented, . . . . . they have managed to create an Asset Bubble in the middle of a recession “ !!!

Oh’ and the Virus is surging again in the U.S ! And its leadership has it all under control, congratulations for demonstrating in can drink a glass a water, in a event tailor made to make the Virus thrive

So, yep, buy a $2000 Call and a $300 Put on Tesla. One of those positions will make enough money to offset the losing position, and then some, to cover the purchase of your Cybertruck

 

[Mark H]

if you buy the model y will you be truckless? i wouldn't do it. invest the cash. maybe not all in tsla tho...

I have a 2004 GMC Denali Quadrasteer that I am currently driving which I won’t sell until the CT comes out

 

[TexasTesla]

I’m stock market stupid, can you explain this process? TIA

So, yep, buy a $2000 Call and a $300 Put on Tesla. One of those positions will make enough money to offset the losing position, and then some, to cover the purchase of your Cybertruck

 

[Geo]

I’m stock market stupid, can you explain this process? TIA

Please excuse me, It would take too long to explain it here if your not familiar with Derivatives.

But on the other hand, I honestly feel “stock market stupid” myself quite a bit recently.

And then there’s quite a few people who also think the Fed Chairman, is quite a bit “ stock market stupid “ himself !

Well at least doing a good job of impersonating Stevie Wonder, when he says, don’t worry, I’m keeping a close eye on asset bubble risk

 

[Mini2nut]

I purchased Tesla stock at $165 and the profits will pay for a large portion of my Dual Motor. In hindsight I should have purchased more! I do think the stock will hit $1200 after Battery Day though.

 

[CyberT]

I'm in the same boat. I don't trust my current car to last (without significant repair expenses) until the CT is available and in my driveway (2 - 3 years?).

I asked my financial guy to buy Tesla stock at $564. "Nope, it's going to crash, almost certain". I asked my financial guy to buy Tesla stock at $800. "Nope, it's going to definitely crash, almost certain". I just asked my financial guy to buy Tesla stock at $990. "Nope, it's going to correct, almost certain."

My internet financial advise, forget the model Y, by rule it needs to lose value in the next two to three years, , buy Tesla stock with half your money, money market the balance, and wait for your CT to arrive.

There is no way of knowing what the stock will do. Money can be lost. I do know that if my financial guy did what I asked him to do I'd have doubled my investment.

I plan on getting in on the stock soon. With or without my financial guy's blessing.

I asked my financial advisor back in 2013 when TSLA was around $100 and he said Tesla wont be around much longer. I asked again in 2015 when it was $200 and he said dont waste your money. In 2018 I forced him to buy shares at $289 after purchasing my Model 3 and going down the Tesla rabbit hole and he recommended that I didn't. Since then I've stopped looking for financial advise from people who think of Tesla as just a "car company" and have bought again at $500, $600 and at $777.

Even at $1000 and an all time high its only only the tip of the iceberg. I've learned over the past few years that Tesla isn't just a "car company" but may very well be the largest energy disruptor ever and I am riding this rocket to retirement.

 

[Handy Artie]

It’s risky to put all your investment dollars in just 1 stock. So why not pick two. AAPL and TSLA. I suggest buying 3 shares of AAPL for every share of TSLA, since AAPL is further along in its Dow 30 journey. Many investors have already hit on AAPL but it has yet to split as a DJIA stock. The average Dow stock splits 2-3 times during its Dow 30 lifetime. TSLA has not yet split at all. If Elon Musk stays healthy expect the first split after it enters the S & P 500 and the biggest split just before it enters the Dow 30. Stock splits is how the little guys makes their money In the markets. It motivates individual stock ownership. Individual stock ownership is how one beats dollar inflation which amounts to 50% devaluation every 20 years or so as measured in consumer prices for goods and services.

 

[Berchman]

I know I shouldn’t take internet financial advice and I’ll take all comments with a grain of salt.

A little background,
I’m a middle class hard working union worker making 65,000 a year. No debt except for mortgage. No 401k but a decent pension of 55% of my wage if I were to retire next year. Otherwise my pension goes up 1200.00 a year for every year I work past my pension.

I’m a truck/SUV person,
I just came into a little money (40,000)
My thoughts were to purchase a Model Y and pay it off by the time the Cybertruck comes out (I ordered the
Tri-Motor) And trade it in for a CT.
Or buy $40,000 in Tesla stock and take the chance that I won’t lose the money and I’ll make enough profit to offset the balance from the trade in.
If the stock crashes My dream of owning a Tesla will vanish.

Thanks.

I have the same plan as you, but I was going to carry it out next Spring when between savings and the sale of my BMW I expect to have a down payment of $35,000-40,000 to get an AWD Model Y. When I have a chance to test drive the Cybertruck I can decide whether to stick with the MY or sell it and get the CT which I reserved two months ago.

Twenty years too late last year I finally hired a financial advisor. Since I'm 82 I told him to devise an investment mix with low risk, specifically, 11% equities and 89% fixed income all in low cost index funds. Unless you really know what you're doing it is extremely risky to invest in individual stocks. Sure, in hindsight it's easy to say if I had only bought Netflix, Amazon, Apple__ fill in the blanks. But there were other hot companies that people lost their shirts on.

I want an interesting toy to play with in the years I have left. A truck would be handy, but if need be, a utility trailer attached to an MY would work. My test drive of a Model 3 convinced me that a Tesla was the toy of choice. If I were your age and had your finances I would hire an independent financial advisor, one who doesn't sell anything but gets paid for his advice, and invest my $40,000 and wait for the CT.