Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 2
I bought some TSLA early this year, before the split.

Congratulations! You've done very well.

As we approach inclusion into the S&P is it time to take some profit? Does anyone have the view that this price is not sustainable? I am a fan of the car and the company, but this current market cap looks like bubble territory.

Beats me! I have been heavily invested in Tesla for years now, and my profits this year have been astounding. Other years not so much.

Tesla is growing exponentially (at least 50%/year), and will continue to do so for many years. Whether the stock price continues to reflect that reliably is unknown. It hasn't in the past.

Right now, over the next couple of months, all I see is good news (for the stock price) events: S&P inclusion reducing the available float by at least 15%; window dressing purchases by funds into the end of the year; upgraded bond rating to investment grade; upside surprise on 4th quarter production and delivery numbers; upside surprise on earnings. All of these will likely conspire to support the stock price. But will it? Nobody knows.

So what you should do depends on your time horizon and your goals. But regardless, you have to ask yourself a question -- do you feel lucky? If you sell now, due to a perceived bubble, will you have the prescience to get back in at the right time? Historically, very few people get that right.

Me, I'm sitting on what I've got and I'm confident it will be worth more a year from now (barring macro disasters).

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.