This is why I sold off half of my Tesla Stock, why I think Tesla surged in price over the last few days, and what I think for the future of the company. Enjoy! Add me on Instagram: GPStephan | PURELY FOR ENTERTAINMENT ONLY - NOT FINANCIAL ADVICE 😉
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When I bought my Tesla Model 3 in the beginning of 2019, the MOMENT I drove the car…I was in love with it. As soon as I drove home, I figured I’d throw some money into Tesla Stock, because I felt like if I loved the car this much…other people would, too - and that would bode well for the future price of Tesla. And that’s when I bought in at $260 per share.
Well…flash forward to now. Last month, Tesla was trading for $451 per share. A week later it was $537. Overnight, it jumped from $580 to $640 a share. Then from Friday to Monday…it went from $650 to $780. And then, today…from $780 to $914 by the time I’m making this video.
While the EXACT factors that contribute to this type of explosive growth are difficult to pinpoint…we do have a few topics we can look at:
First, I mentioned this in a previous video…but Tesla was the #1 most shorted stock on the market. Which, if you’re not familiar with what that is…shorting a stock is basically a BET that the price of the stock will go down - and if it DOES go down, you make money. If the stock goes UP - you LOSE money.
After all, it’s estimated that 18% of all Tesla Stocks are shorted…and given how much the stock has risen in the last week, it wouldn’t be surprising that those Tesla Short Sellers have to pay a significant amount to cover their losses - and if there aren’t enough people to SELL the stock in the first place, that would cause demand for the stock to rise fairly quickly.
Second, and this is just theory - but the overseas markets fell about 9% on Monday from health fears…and amid the selloff, their bank injected $173 billion dollars of capital into the financial system. It COULD be theorized that, maybe…as people sold off their investments in China, they looked for OTHER investments that could make up for their losses…and Tesla was one of them, given the recent run-up in price. Again, there’s no PROOF for this…but this is just merely speculation, so take that for what it’s worth.
Third, you also have another analyst who raised their price expectations for Tesla stock from $556 to $808…was definitely fueled more demand for this stock to grow even further. Not to mention, we have ANOTHER analyst who predicts a $7000 Tesla stock by 2024…and, at that point, it just becomes a free for all.
And fourth… I think there’s something to be said about the euphoria of making money, and I’m a little concerned that excitement is driving the market more than logic…and at that point, I have to question the current valuation at this moment in time.
So, given that…I ended up selling HALF of my Tesla position at $912 per share, and then I’m holding on to my other half just to see what happens. This way, I can be a completely SANE and REASONABLE Investor who isn’t afraid to take some profits off the table when the time is right…or, in other words…when I’ve more than tripled my investment in less than a year.
But, also, I’m not going to sell off everything because I still believe in them, and I think they have the potential to one day become a trillion dollar company depending on how well they continue to innovate. So, hopefully…this is the best of both worlds.
And really…no one can predict what this is going to do. I mean, we can all do our best to analyze the TRUE fundamentals of what Tesla is worth…and I’m sure each of us will have our own valuation. But, at the end of the day…it’s worth what someone else is willing to pay.
But, again…this is not financial advice. For entertainment purposes only.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
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