Will Tesla go up to $700 or go down to $600, this week?

[Luke42]

I'm buying every chance I get.

What do you think an appropriate price for TSLA-the-stock is, and why?

Remember that it's possible for Tesla-the-business to be great shape while TSLA-the-stock is mispriced (because of the public enthusiasm for Tesla-the-product and Elon-Musk-the-personality).

 

[Sirfun]

No, it's pretty simple.

With a volatile stock like TSLA, you set a budget, then set a call you buy at a low, and then another to sell at a high that covers your costs of the transaction.

Then when/if it pays off, you do it again. Slow, steady, but you lose out on big jumps.

Only do it with entertainment money, tho, since it's not a steady investment like holding.

-Crissa

That would be correct. I've missed a couple of big jumps upward. And that feels painful. But then I also missed most of the big drops down on the Rollercoaster too. I also agree, I've never played with more than half of my account. Usually it's only about 33%. And I have sold for, as much of a loss as $10 per share, and sold at even money. I try to not hold shares over the weekends, and have been fairly lucky and grabbed a couple of good profits. This all started in late January. I sold everything (including tons of shares in ARKG that were down) for various reasons. Yes, right after I sold, it went up and that was painful to watch. But, eventually market forces pushed it back down. I didn't want all my cash just sitting there doing nothing, so in late February I started dabbling in catching some small profits and limiting the loses (in TSLA). Fortunately it has worked out alright, and I have been able to earn about 20% profit on the money I invested. This was while TSLA went from $842 in February to the Friday closing price of $650.28.
I'm just a retired 66 yr. old guy who has a lot of free time, sitting around my computer. There's always risks, and this is definitely not for everyone. But that's my story, and I'm sticking to it.

 

[Luke42]

Man, it does matter whether $575 or $716!!!
And... I like to take risks. Life will be so boring if we don't take risks: no emotions, no adrenaline, no new feelings... And no regrets

There are lots of ways to make money. In the last 2 months I've been trading TSLA with pretty good success. Holding on average for 1-2 days and taking small profits even as the stack was trending down in value.

From my observations lately, TSLA-the-stock looks like a good candidate for support-and-resistance trading. The stock is highly volatile and trades in a presictable-ish range.

This isn't the kind of trading I'm doing at this time, but I can easily see it working for someone else - until it doesn't.

People like Tim.Luchenko with preprogrammed buy-orders create the support. People cashing out at the high price create the resistance.

Most Reading strategies stop working once enough people figure it out, though. ?‍

 

[Sirfun]

What do you think an appropriate price for TSLA-the-stock is, and why?

Remember that it's possible for Tesla-the-business to be great shape while TSLA-the-stock is mispriced (because of the public enthusiasm for Tesla-the-product and Elon-Musk-the-personality).

This comment makes me think that you feel TSLA is priced higher than you think it's worth. I feel that way too.
BUT, prices are based on what people will pay. All around us, we see prices that we THINK are high. However, the prices are determined NOT on what we think is a fair price. But on what the market will bear.
Another extreme example of this would be the 3 bedroom track house I grew up in. It was built in San Diego, in 1959. And sold to my parents for $16.500. I recently did a search on Redfin. This beat up 63-year-old 1500sq ft. crappy house, has a value of $1,070,000. Do I think it's worth even half of that? HELL NO! Unfortunately, that's a ballpark figure of what someone would have to pay, if they want to buy it though.

I look at TSLA as an investment opportunity when I'm purchasing the stock. Will the price go up or down. If people looked at the actual value, I doubt most of us would be buying stocks, or real estate currently.

Yes, I know how the game is played and I don't have the time or expertise to play it. The poster said that he is trading every day or two, and in my mind that makes him a day trader, which is a completely different kind of investor than me. Most of my investments are in broad spectrum vehicles (401Ks for example) where someone else is managing the account and the funds in them. It is only companies that I believe in that I actively purchase shares. I think of myself as very risk averse. I bought some Tesla stock hoping to get better rate of return than my savings account or money market account which are essentially worthless. I have achieved those gains, at least on paper, and consider myself lucky. I do check the stock price every few days but I am hoping for a longer-term trend back upward. Will I buy more if it drops to $600 or below? Yes. Do I want it to? No.

I think you misread my post. I said I HOLD my purchases for an average of 1-2 days. Likewise, I probably buy about once a week or so, based on when I feel there's an opportunity to make money. But right now, after I buy stock. I sell it (hopefully for a profit) based on a level of comfort. Sometimes, when I think I missed, and it feels like a big drop is near, I'll even sell at a limited loss. Like I've said I rarely hold it for more than a couple of days, or even more rarely, over a weekend.
It's my current strategy (which luckily has been working for me). TSLA has a habit of going on long/big runs up when it does go up. As the price goes down. I'll probably feel much better about holding for a longer period, to hopefully catch that ride up.
A major reason why I'm taking the time to explain myself, and my current strategies, is because I don't want people to think I'm buying to hold long when we're talking about TSLA. There have been times when I said I bought TSLA on this forum. And then turned around and sold it right away. I've felt a bit bad, that people thought I was buying to hold long.

 

[John K]

If you make money, and do not do anything illegal, your investment strategy is good.

If you lose money consistently, maybe redefining your strategy is warranted.

If you are in denial, I am sitting next to you.

 

[Bill906]

Will it get to $700, or $600 first?

I bought some at $650, so past experience tells me it will go down.

 

[charliemagpie]

What do you think an appropriate price for TSLA-the-stock is, and why?

Mine is an opinion , with an IT and business background, and having dabbles in shares for 30 years.
The bottom line for any business is profit, and I discovered early.. big and small businesses just differ in zeroes, but similar percentages and headaches apply.
Just as a small business person can get lazy , so can a big business become ossified..there are differences, but death is the result for both.

It leads to this : I bought in 2018 for $60. Thinking it may double. By 2019 I apologised to by wife as the shares had dropped, but I could see it rising 4-5 times.

In 2021, i once again calculated Tesla's income potential, I kept expanding the column. 'Honey;, I don't know what is going to happen. It will be 10 times more again. After 2027, it's ridiculous.

Tesla is a business…. it is this millennium's version of the East India trading company… but bigger.

I read comments here relating to short term, and profit taking, etc.... IMO people are not seeing the forest for the tree's. The true fantastical potential is the long term.

 

[Luke42]

This comment makes me think that you feel TSLA is priced higher than you think it's worth. I feel that way too.
BUT, prices are based on what people will pay. All around us, we see prices that we THINK are high. However, the prices are determined NOT on what we think is a fair price. But on what the market will bear.

As you say, the price for TSLA stock is clearly set by supply & demand.

The question is: what is driving that demand, and is it sustainable?

Most investing talk implicitly assumes that stock prices are based on future profits & growth. According to these models, TSLA stock is wildly overpriced, so that kind of thinking isn't driving the demand. So what's driving the demand for TSLA stock?

My best guess after spending some time steeped in everything-Tesla is that the demand for TSLA stock is being driven by the personal fandom of Elon Musk. The question, then is if demand for TSLA based on Elon Musk fandom is sustainable over the long term.

Of course, I know my own limitations, so I'm interested to see what everyone else thinks in case I've missed something.

 

[flowerlandfilms]

Everyone should HODL at least until Billy Boy has to pay out to cover his short position.
I want some of that sweet Windows 95 cash.

 

[flowerlandfilms]

And it just went above 700

 

[charliemagpie]

Asif

Fandon is an outcome.

A PE ratio of 100, and a frwrd PE of 50 is not personality driven

I’d say that clearly indicates profit is mostly the driver.

 

[Sirfun]

That didn't take long! Yep, I missed it TSLA up 11% in one day. Congrats, all of you that are holding the stock!!! ?