Should I Sell?

Texas Proud said:
I keep hearing about Tesla being a software company but I do not see evidence of it... the vast majority of the income is selling cars and getting money from the gvmt... what pct. of sales is from software?



And the resale value of the car does not hold up to your statement... they devalue more than an ICE from what I have read...


I can buy a 2018 Model S for less than my 2018 Genesis... and the Genesis was cheaper back then...



You got in early and have a great profit... but I would ask how much lower are you from the high? It has been going down... high was $414 but now $188.... at least what I see on the graph...
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I bought TSLA at $75/share split adjusted so I have a lot more upside than most people. Tesla uses its software to run its cars and not necessarily sells it's software to the public. I have 2018 model 3 rare silver edition. I do not plan on reselling it anytime soon. ;)
I firmly believe with Mr. Musk's endeavor in AI via xAI and Project Omega, Tesla and the other companies he owns will be benefiting from any AI advancements indirectly through upcoming software upgrades.
 
I hope I get the recall soon. I am afraid to drive my model Y with the small fonts.

I saw a picture of the three new icons. They are much clearer.

I am glad the government is protecting me.
 
target2019 said:
Very large Tesla recall for a larger font size. Lol.

This is the part that worries me about individual stocks. One wrong step and the market punishes you.
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I don't buy individual stocks (often) because I know that I can't know what is really happening inside a big company. I don't own shares of TSLA (beyond what is embedded in the indices).

That said, if I were chasing TSLA, this kind of recall would make me a buyer. Everyone freaks out over what will be a very low cost software change that goes out in their next update. The "recall" doesn't involve people showing up and a mechanic. It involves a few, junior software engineers and if they are smart they will talk it up as an example of the benefits of their software-centric execution. Its the equivalent of Apple having to "recall" a few emojis because the government said they were insensitive.

This kind of noise will wash out of the stock very quickly IMO.
 
Kalm said:
I bought TSLA at $75/share split adjusted so I have a lot more upside than most people. Tesla uses its software to run its cars and not necessarily sells it's software to the public. I have 2018 model 3 rare silver edition. I do not plan on reselling it anytime soon. ;)
I firmly believe with Mr. Musk's endeavor in AI via xAI and Project Omega, Tesla and the other companies he owns will be benefiting from any AI advancements indirectly through upcoming software upgrades.
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It was no low in value but I had a 2004 Acura TL with 6 speed manual that I LOVED... I was not planning on selling it but it was totaled...


If the current value is very low you do not get much if a car is totaled... it does not matter if you plan to keep it or not...



And I read that insurance companies total out EVs more than ICE as they are expensive to fix... so one bad accident and bye bye model 3... (and I an not wishing it on you, just FYI)...
 
One 'big picture' item to remember is that you own shares at a position relative to your original (or averaged) purchase price. You are not losing or gaining money until you sell your shares. In this way, I always try to keep a lid on my emotions when up and down - that is - not overly happy when way up, or not overly upset when way down.

My mentor had cautioned me about individual stocks espousing ETFs/indexes comparing to horses....ie "why buy one horse when you can buy many". Anyway I went ahead with investing in both.
 
pc95 said:
One 'big picture' item to remember is that you own shares at a position relative to your original (or averaged) purchase price. You are not losing or gaining money until you sell your shares. In this way, I always try to keep a lid on my emotions when up and down - that is - not overly happy when way up, or not overly upset when way down.

My mentor had cautioned me about individual stocks espousing ETFs/indexes comparing to horses....ie "why buy one horse when you can buy many". Anyway I went ahead with investing in both.
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I hate this saying that you are not making or losing money unless you sell.. that is just bunk... Elon Musk is the richest man in the world based on the current value of his stock... he does not have to sell any to be #1...


You really do gain or lose with the prices going up or down... you do not 'realize' that gain or loss until you sell, but the gain or loss is real... as a way to find out, pledge shares on a loan and see what the bank does if those shares go down.... they ask for more or call your loan..
 
Texas Proud said:
I hate this saying that you are not making or losing money unless you sell.. that is just bunk... Elon Musk is the richest man in the world based on the current value of his stock... he does not have to sell any to be #1...


You really do gain or lose with the prices going up or down... you do not 'realize' that gain or loss until you sell, but the gain or loss is real... as a way to find out, pledge shares on a loan and see what the bank does if those shares go down.... they ask for more or call your loan..
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It's true.
There's nothing bunk about it, stocks are not currency. We don't purchase goods or services with stocks. And we value stocks based on what someone will pay currency for at any given point and time in the open market. Their value moves up ,down, or sideways every market day. The only thing that matters is when you decide (or forbit) need to sell.
 
Is this "play money" or a substantial % of your portfolio? (ask yourself, no need to reply here)

If your TSLA holdings represent pocket change for you then I'd either sell it now, or hold it but don't lose sleep. Buy or hold TSLA - either way I wouldn't stress if it's say... 1or 2% of your investments. If TSLA represents an amount that you can't afford to risk then consider putting it somewhere that's more in line with your investment objectives.
 
Cayman said:
Is this "play money" or a substantial % of your portfolio? (ask yourself, no need to reply here)

If your TSLA holdings represent pocket change for you then I'd either sell it now, or hold it but don't lose sleep. Buy or hold TSLA - either way I wouldn't stress if it's say... 1or 2% of your investments. If TSLA represents an amount that you can't afford to risk then consider putting it somewhere that's more in line with your investment objectives.
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This gets back to owning index/ETFs vs single stocks. And I agree if owning single stocks, watch out for outsized allocations. If going singles, One way to help remedy this is aim to have similar weights for each stock you own.
 
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No one has a crystal ball and your question is really unanswerable. When in doubt, you can always sell half.
 
Musica40 said:
... My questions are:

a. Should I take the loss and sell now?

b. Should I wait and hope that it goes back up to where we at least break even and then sell?

c. Do you see Tesla rebounding and becoming a factor in electric cars? ...
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a. The stock doesn't know what you paid for it. Every day you hold it is the same as making a decision to buy it on that day.

b. Same answer. The behavioral finance folks laugh at this kind of thinking. We humans are wired to hate losses, so we set up these strange strategies that are totally unrelated to any investment question. If you think the stock will go up, hang on. On the day you decide that it will no longer go up, sell it. Regardless of what you may ave paid for it. Tax questions can muddle this scenario a little bit, but at the end of the day the amount of money you keep is the criterion for winning. Taxes you may have paid on the way are irrelevant.

c. Wrong question. The question should be whether the current price of Tesla is justified by its potential. A good company is not necessarily a good investment.

Here is investing patriarch Ben Graham (in "The Intelligent Investor") on the problem: " ... we hope to implant in the reader a tendency to measure or quantify. For 99 issues out of 100 we could say that at some price they are cheap enough to buy and at some other price they would be so dear that they should be sold. The habit of relating what is paid to what is being offered is an invaluable trait in investment. In an article in a women’s magazine many years ago we advised the readers to buy their stocks as they bought their groceries, not as they bought their perfume. The really dreadful losses of the past few years (and on many similar occasions before) were realized in those common-stock issues where the buyer forgot to ask “How much?"
 
pc95 said:
It's true.
There's nothing bunk about it, stocks are not currency. We don't purchase goods or services with stocks. And we value stocks based on what someone will pay currency for at any given point and time in the open market. Their value moves up ,down, or sideways every market day. The only thing that matters is when you decide (or forbit) need to sell.
Click to expand...


It is not... there is real loss... the current value of the shares and realized loss... when you sell the shares... you are saying that there is no real loss until you realize it... and that is where I am saying your 'logic' is wrong.. if the shares go down you are losing real money...



I guarantee that is you had 1,000 shares of Enron right now and never sold it nobody would say you did not lose everything because you did not sell.. And do not think that it could not happen.. for some reason my mom had some small company that went bust... but her statement carried it on her account for at least 8 years at zero value... I finally called to get it removed when I took over her finances...
 
Musica40 said:
Elon Musk has made bad choices and has done his best to ruin this company.

I no longer believe in Tesla and feel the damage done is too much to overcome.

We are ready to sell and move pass Tesla.
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You've answered your own question haven't you? These comments seem hyperbolic to me. If Elon (or anybody in charge) wanted to ruin their own company, they wouldn't be the #1 electric car manufacturer.
 
l8_apex said:
You've answered your own question haven't you? These comments seem hyperbolic to me. If Elon (or anybody in charge) wanted to ruin their own company, they wouldn't be the #1 electric car manufacturer.
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Being the #1 EV company does not mean the stock is priced correctly...


And I mean based on the fundamentals... if Elon was not part of the company what do you think Tesla would be worth?
 
Texas Proud said:
Being the #1 EV company does not mean the stock is priced correctly...
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Actually, history would tend to tell us it is not.

A five year graph of ARKK is a pretty good paradigm for this kind of situation.
 
Texas Proud said:
Being the #1 EV company does not mean the stock is priced correctly...

And I mean based on the fundamentals... if Elon was not part of the company what do you think Tesla would be worth?
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I have no idea what it's worth either with or without Elon. I'm not invested in Tesla. If we go down that rabbit hole, isn't most everything in the S&P 500 overvalued by traditional P/E measures?

I just know that I'm not going to own any stock in any company where I feel the same as the OP feels about Tesla.
 
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