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Better choice: Hold TSLA stock or buy the Model S now ?

The early TM critics said “buy the car not the stock” … were they wrong ... $17 to $36 per share! Could it now be said “buy the stock not the car” !!! I really don’t need the S until my wife retires (5-7yrs) and we have time to do interstate travel. However, I have a hopeless case of Tesla Addiction and WANT the S now. Her challenge to me is "if you are that much of a believer, keep the money in the stock and delay the purchase." So my rationale to her (having the car now vs holding 2000 shares TSLA …i.e. you can’t do both) is:

1) Jim Cramer says “pigs get slaughtered.” I have already made enough on the stock to pay for most of the options offered on the car (bought and sold shares since the IPO--- currently holding only 400 shares which I’ll sell to cover my battery upgrade).

2) THE MACRO ECOMINIC ENVIORMENT IS WEAK. I think the stock market is in for a 20% correction in the next 3 to 6 months hurting TSLA more so because of it’s high beta (volatility). I need this money to buy the car so that is why I've already taken profits.

3) THE S WILL NEVER BE CHEAPER. Aluminum is currently at a low but could jump with other commodities (not sure if TSLA has a hedge on Aluminum) and inflation (labor and material) will force price increases at a time when Federal and State rebates (depending on election) may go away. Inflation costs could be offset by economy of scale and tech innovation…big unknown. I think TM will price the S just like a “top of the line” computer E.G. Apples's Mac Pro price never comes down … you just get a faster/better performance Mac.

4) GAS LINES. What if Israel bombs Iran? Wait for an hour to pay $7 per gallon (already close to $5 in CA)?


6) FINALLY … even if I sit in it and go nowhere … it is a piece of art to behold. Sadly, I miss at least a double as TSLA goes to 80 per share in 2018 :(

What to do, What to do ...... help!

"Then those shorts will, well, loose their shorts in more ways then one... :)"

They may lose them, too!

Just noticed in your head posting, you mispronounce "environment", and spell it the way you say it: "ENVIORMENT".


LOL, I forget that I need to run my posts trough Word first before posting here when Brian H is on the prowl. I should have written it as prowel to keep you on your toes... ;) This is after all a fun enviroment to post in, since that is how I say it... :D Kept the belt on those loose shorts!

OK, I'm just being a stinker now aren't I?

@Brian H & BYT


Short answer.
Yes - Hold the stock.
Yes - Buy the Model S.

I can't remember a better American success story in my lifetime!

But..... Elon's Canadian :D

Sort of. Born in South Africa, mother dual citizen Canada/SA, emigrated to Canada for a while in order to get into the US! He worked here for a while, travelled across the country, so he has some creds. But he was never a Canadian citizen, AFAIK.

Still counts :P

As a long time investor I learned many lessons not holding a stock for too long and so I unloaded all of my shares at $70 earlier and pretty happy with the price sold. I believe TSLA will go over $100 this year and plan to buy some back at $50+ when retreated.

If I had about 100k to play with with I would still buy a 60 and use the 25k left to buy stock. P85s are wonderful machines but buying a 60 means you can have your cake and eat it too.

If you have the money, buy it and be happy - you will not regret it and if you drive it for 12 years it pays for itself (depending on how much you drive maybe sooner) nothing wrong with older cars if you take care of them - smart not to trade in after 5 years else you get hit with the steepest depreciation slope...

Update: In the end, I decided to hold 2000 shares of stock @ 28-30 and get the Sig Perf. This was against my trading rules, personal budget, etc but I was willing to take the risk. So far, the TSLA stock (most of this profit has been booked already) has paid for 80% of the Sig and this week I’m looking to pay for the remaining 20%. Wow…what a RIDE it has been … yes the stock and the car :)


Just read this thread and glad to hear that you kept the shares.

@SamoSam | MAY 12, 2013

Thanks…me too! This is the 3rd time I’ve flipped my shares since 2010…maybe I’ll get the last 20% this time ($82 today). My wife almost killed me on this one but she is REALLY happy now.

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