Tesla stock

[1nderbeard]

So you're saying sell everything, cash out retirements, and buy Tesla. I'm on it.

Seriously though, don't tech stocks typically have a higher PE ratio compared to car companies?

Is Tesla a tech company though? And what does the Tech company do that makes money?

I've honestly not done the research on PE ratios and tech companies, so you could be right. But I also think (no real data here aside from my intuition) that Tesla is over valued. I'd be careful, knowing that the investment is more speculative.

I bought a bunch of Black Rifle Coffee shares, mainly because I liked both coffee and guns. Share priced spiked at first, because a bunch of other people thought the same thing and drove the price up. It soon came back down and is worth less than I paid for it, because reality hits at some point. The price was out of whack with what the company earnings would be, and the market eventually caught up. I think the same thing could/should happen with Tesla. Right now people think it has value, and so it does. The question is again, is it worth that because it's a solid earning company, or because people just like Elon?

 

[J Galt]

Is Tesla a tech company though? And what does the Tech company do that makes money?

I've honestly not done the research on PE ratios and tech companies, so you could be right. But I also think (no real data here aside from my intuition) that Tesla is over valued. I'd be careful, knowing that the investment is more speculative.

I bought a bunch of Black Rifle Coffee shares, mainly because I liked both coffee and guns. Share priced spiked at first, because a bunch of other people thought the same thing and drove the price up. It soon came back down and is worth less than I paid for it, because reality hits at some point. The price was out of whack with what the company earnings would be, and the market eventually caught up. I think the same thing could/should happen with Tesla. Right now people think it has value, and so it does. The question is again, is it worth that because it's a solid earning company, or because people just like Elon?

Legit points. Aren't all investments speculative though?

I think (and this is from an incomplete understanding) that their tech side, let's look at their AI, develops software that allows FSD (fully self driving) cars This tech (the software) is then sold to other companies for similar applications, and applications beyond the original research purpose.

So in other words, they develop FSD AI. They sell a license to Toyota to use this. Then they sell a license to trucking companies to use it as well. Obviously, not that easy, but that's a possibility of how the tech would be profitable.

Similar situation with their battery side. They develop the tech for improving battery capacity and longevity. They sell a license for that tech to Energizer, car battery manufacturers, create electric planes, and then we have Surefires with an 8 hour run time.

Again, not that easy, but an overview of how I think the tech side of Tesla would be more profitable in the long run.

ETA: Tesla could well be overvalued now. However, the current price may be an undervaluation for 7 years from now. But, that's just my speculation.

ETA2: I don't think people "like" Musk. He has a lot of negative media attention at the moment. People are sheep and listen to the corporate media like they are truthful and accurate.

 

[BE Mike]

A lot depends upon one's age and how much money one wants to risk. Buying one individual stock is pretty risky. Nobody can predict the future accurately. My wife bought several individual stocks quite a while ago. Some tanked and some paid off. She pretty much came out ahead. The most risk I take is to have some money invested in a mutual fund. I'm not interested in following the market (it seems like a full time job to me, if one wants to succeed). High tech stocks, seem very risky, especially when they depend upon one or two individuals. It seems to me that one isn't just investing in a company, but individuals. If Elon dies suddenly of a heart attack or in an automobile accident, what will happen to the company?

 

[J Galt]

A lot depends upon one's age and how much money one wants to risk. Buying one individual stock is pretty risky. Nobody can predict the future accurately. My wife bought several individual stocks quite a while ago. Some tanked and some paid off. She pretty much came out ahead. The most risk I take is to have some money invested in a mutual fund. I'm not interested in following the market (it seems like a full time job to me, if one wants to succeed). High tech stocks, seem very risky, especially when they depend upon one or two individuals. It seems to me that one isn't just investing in a company, but individuals. If Elon dies suddenly of a heart attack or in an automobile accident, what will happen to the company?

You just hit the nail on the head when it comes to my biggest reservation. He is poking the hornet's nest with what he is releasing with the Twitter Files. I am concerned he will be Clintoned at some point. I think you're 100% right, his companies depend on him; his vision, his drive to accomplish. If he is murdered then there is no telling what, exactly, will happen to his companies.

 

[Tbell7]

If considering Tesla I would also look at purchasing Amazon stock. They just rolled out a 3rd party buy with prime feature. Also GEHC. The first of January General Electric split and started a separate health care division. Very good stock to watch.

 

[abeguzmanmarine]

I started watching TSLA on 1/4/22 for most of the same reasons you are currently talking about. It was $127.85 at the time. I only buy 100 shares at a time so I have the availability of options. I did not have $12K so I invested in something else. It currently sits at $177.90. It went up and down like everything else, but its like Amazon. It always goes up.

 

[Dr.Midnight]

I'm not 100% on board with Dave Ramsey's investing philosophy, but I'll borrow one of his sayings. "When I'm looking for a house, I like big oak trees.", which means I tend to avoid a company like Tesla and stick with old faithfuls like American Express, Johnson and Johnson, Coke, Walmart, etc.

 

[J Galt]

I'm not 100% on board with Dave Ramsey's investing philosophy, but I'll borrow one of his sayings. "When I'm looking for a house, I like big oak trees.", which means I tend to avoid a company like Tesla and stick with old faithfuls like American Express, Johnson and Johnson, Coke, Walmart, etc.

I get your point. I think a lot depends on your goal. If you are looking long term stability with relatively small returns, then the old companies are the way to go. I'm looking at Tesla as being a company that is on its way to becoming an old stable company that will be around for a while. Imagine buying Amex, J&J, Coke, and Walmart when they were fairly new!!!

Not long ago, I signed up for Acorns with the goal of putting money into the old companies. My goal for that was the same as your approach. I did a weekly deposit and added the 10x to my "round ups". It is truly passive investing. It won't be enough to retire on, but it should be enough to fund a nice one month trip overseas, or buy the next Tesla when I cash it out.

 

[BE Mike]

It seems like for the very long term, i.e. 20 years or so, that gold is a good investment.

 

[BehindBlueI's]

You just hit the nail on the head when it comes to my biggest reservation. He is poking the hornet's nest with what he is releasing with the Twitter Files. I am concerned he will be Clintoned at some point. I think you're 100% right, his companies depend on him; his vision, his drive to accomplish. If he is murdered then there is no telling what, exactly, will happen to his companies.

Without the murdery overtones, investors have largely felt the same, hence Tesla's dip when Musk got more involved with Twitter. His time and attention is a limited resource, and more for Twitter means less for Tesla. Supply/Demand and him flooding the market with his own shares to fund the Twitter acquisition pushed the price down as well.

I started watching TSLA on 1/4/22 for most of the same reasons you are currently talking about. It was $127.85 at the time. I only buy 100 shares at a time so I have the availability of options. I did not have $12K so I invested in something else. It currently sits at $177.90. It went up and down like everything else, but its like Amazon. It always goes up.

It's lost over half it's value since topping out somewhere around $407. It's got a lot of clawing back to do, and to my mind there's a lot of what ifs out there. I'm a boring investor, though, others may enjoy a more exciting ride.

 

[blain]

Teslas are some of the hottest cars on the market. YIKES!

 

[J Galt]

Teslas are some of the hottest cars on the market. YIKES!

#FearPorn