Are you also investing in Tesla?

[AnOutsider]

Yes, but we've all seen how effective the SEC is when it comes to regulating the financial markets.

haha indeed. It's an enforcement nightmare without some hard evidence. Today's numbers sucked, I had intended to sell some today or tomorrow, but I'll now be holding on til it rebounds

Companies that are constantly making announcements in the hope of creating artificial interest in their stock are not to be trusted! Announcements should be substantive, not mere attempts to boost their stock price.

Man, ain't that the truth

[Norbert]

No, no, no! We need it to go WAY down so we can all buy more of it before the Model S goes into production and it heads back up. Remember, you have not lost any money on a bear market unless you sell at the lower price! Just as a bull market does you no good unless you sell at the higher price. Stock prices ONLY matter at two points: When you buy and when you sell. In between it's all meaningless.

Companies that are constantly making announcements in the hope of creating artificial interest in their stock are not to be trusted! Announcements should be substantive, not mere attempts to boost their stock price.

The other side is that without any communications, people get worried for no good reason and sell stocks even as all objective information looks better and better for a launch. I currently don't see any good reason for the stock to go down, unless we all are missing something. It's not supposed to be a bus line running between A and B to pick up late comers again and again.

[onlinespending]

After getting in at 26-ish and getting out at just under 35 in the recent past, can't seem to bring myself to investing in Tesla again given the pending reservation and the money I'll be sinking into the Model S itself. Too many eggs in one basket and all that jazz, I guess; I'm impressed at many of you who are able to sleep well while doing both

It's funny but it's crossed my mind that I should short TSLA as a hedge. If the company succeeds, I get hit on the stock, but at least that means I'll be getting my Model S and the company will be doing well. But if the company fails and I don't get the car, at least I make out financially by shorting TSLA.

[Steph]

It's funny but it's crossed my mind that I should short TSLA as a hedge. If the company succeeds, I get hit on the stock, but at least that means I'll be getting my Model S and the company will be doing well. But if the company fails and I don't get the car, at least I make out financially by shorting TSLA.

Funny how people can have crazy talk when a stock is not doing much for a few weeks

[TEG]

Buy, Sell or Hold Tesla? - CNBC

[ggr]

Days like these do worry me though. A five percent drop for no reason. Always make me wonder if insiders are trading on bad news that hasn't been made public yet. So far it hasn't been anything but it always makes me wonder.

Always look at the trading volume on a volatile stock. The volume was pretty low, so that just means that some people wanted to sell and drove the price down because there weren't many buyers. I think that most of the buyers at the moment are people like (many of) us, small players buying on the dips. Anything that causes market players (as opposed to we insiders) to buy will cause the price to go back up... there just hasn't been much news recently.

Having said that, rumors of BMW, and news of cheaper batteries, might help over the next few days.

[JRP3]

http://www.cnbc.com/id/47065739

Ruschs doesn't see the weakness as a negative vote from the market, but rather one investor reorgnazing its holdings.In fact, he says the resulting weakness is an opportunity for everyone else.

That's because Rusch thinks Tesla is something of an undiscovered gem that's about to capture the hearts of its constituency - affluent car buyers. The Tesla Model S sells for $49,900 and up.

[mnx]

It's funny but it's crossed my mind that I should short TSLA as a hedge. If the company succeeds, I get hit on the stock, but at least that means I'll be getting my Model S and the company will be doing well. But if the company fails and I don't get the car, at least I make out financially by shorting TSLA.

I thought the same thing when I first started buying... lol

Buying puts might be a better hedge against getting the car though... That way your losses are limited.

[daniel]

After getting in at 26-ish and getting out at just under 35 in the recent past, can't seem to bring myself to investing in Tesla again given the pending reservation and the money I'll be sinking into the Model S itself. Too many eggs in one basket and all that jazz, I guess; I'm impressed at many of you who are able to sleep well while doing both

I can understand this. I would not put a significant amount of money in any start-up company, and in my case, I'm not buying a Model S. As long as I can still get in and out of my Roadster I don't need another EV. But if the money you had in TSLA was the same money you're planning on using to pay for the car, speculating on a volatile stock is especially risky. It amounts to gambling with the rent money.

When asked why he never gambled, Herman the German from Pushkin's story The Queen of Spades replied "I refuse to risk the necessary in pursuit of the superfluous." If I wanted a Model S, the last thing I'd do is use the purchase money to speculate in the market.

The other side is that without any communications, people get worried for no good reason and sell stocks even as all objective information looks better and better for a launch. I currently don't see any good reason for the stock to go down, unless we all are missing something. It's not supposed to be a bus line running between A and B to pick up late comers again and again.

News affects stock prices. But it's not the only thing that does. Tesla is a small company, and compared to the overall market has very few shares outstanding. One big investor repositioning his portfolio and sending the stock down a few pennies might trigger others to get out in fear of a bigger drop, thus furthering the drop. The way investors react to each other's actions is a chaotic system that cannot be predicted. Add to that the fact that the "real" value of the company (of which the likelihood of growth is a significant part which is pure guesswork) is anybody's guess, and you have a recipe for the kind of volatility that TSLA and other small companies display.

It's why speculation is risky. And it's why I invest for the long term. Unlike our emotional friend the Califlower, I care about the success of the company, not about it's stock price, because if the company succeeds, it's stock will go up. But it's guaranteed to bounce around a lot getting there. It's the nature of the market. And it's in the nature of volatile stocks that there is not always a reason for each dip and rise.

[onlinespending]

Funny how people can have crazy talk when a stock is not doing much for a few weeks

nope. have had this thought since the beginning.