Tesla, TSLA & The Investment World: The 2019 Investors' Roundtable
Separate names with a comma. FYI I do have some TSLA, about 8% of my net worth. What would a bullish investor put in as a % of net worth? 10% seems like a % that is material and can move the needle, yet still allows for decent diversification, yeah? Is there a rule of thumb (for casual investors)? A couple of things. First, what does net worth mean? If you have 10k to your name, there is no place for TSLA. Head over to /r/personalfinance and follow their advice. If you have 100k to your name it is more complex: do you need to feed a family? How much do you need for housing etc? TSLA swings widely and more than you think in your wildest dreams. Invest as much as you don鈥檛 need in the coming 10 years. If you buy, don鈥檛 sell unless you have made a profit (otherwise you just transfer money to the shorts), avoid margin and leverage. PS: I鈥檓 amazed and disgusted how obvious the Wall St. circus manipulates stock prices. Tesla today is not materially different from Tesla last week and yet Wall St. fueled sentiment has changed dramatically.
Panasonic STILL not up to full production capacity is news. In fact, every week they're not up to full production capacity, it's news that they're still not up to it. It's extremely material news too. It has been all over the news for weeks now that Panasonic production capacity has been holding back Model 3 (and energy) production during Q1. If I remember correctly Elon even tweetet about it, saying that they are not at 35 GW, which many assumed, but 24 GW. I don鈥檛 know if I have the details correct, but it definitely isn鈥檛 news. So why are shorts leaving? They were really banking on Tesla not having the ability to raise money? CRCL - Can鈥檛 Raise; Can鈥檛 Leave - which was stoked and encouraged by reporters like Charley Grant and Russ Mitchell. According to this theory, SEC had sent a Wells Notice to Tesla, which they will have to disclose if they were to go for a cap raise.
I don鈥檛 know about the Can鈥檛 leave part.. I can鈥檛 be bothered anyway. All these theories hit a solid wall when Elon raised cash like a Boss (or an Absolute Unit). CRCL - Can鈥檛 Raise; Can鈥檛 Leave - which was stoked and encouraged by reporters like Charley Grant and Russ Mitchell. According to this theory, SEC had sent a Wells Notice to Tesla, which they will have to disclose if they were to go for a cap raise. I don鈥檛 know about the Can鈥檛 leave part.. I can鈥檛 be bothered anyway. All these theories hit a solid wall when Elon raised cash like a Boss (or an Absolute Unit). I was second customer at new service center in Spokane, WA yesterday. Service is scaling in my neck of the woods. For your typical educated investor 10% would be a reasonable limit in any single stock. However Tesla is one of the most contentious, volatile stocks in the stock market today. So unless you have a stomach for high levels of volatility anything more then 10% will no doubt induce moments of panic and poor decision making.
For me personally I'm at about 20% in TSLA where previously I never had a single stock more then 10%. I bought into Tesla at about an average of 190/share in the 2016 time frame. My only regret is I didn't do a better job trading around the volatility. 2000 a share. I also run about 20-30% in cash at all times which allows me to take more single stock risk. Due to long term employment with a single company and associated 401k my primary holding is a simple S&P 500 index. 250/share is a great entry point from a historical price perspective if you are bullish on the stock. 325 level pretty quickly. 600/share will come quickly. It will be driven by profitability and growth which should dampen the volatility of the stock and reduce the high levels of contentious exhibited by this stock. 600 a share will happen in 2020 once the china factory is in volume production.
