Is Tesla a high risk gamble?

I have watched many videos of youtuber talking about Tesla. Most said that " Tesla will be our future". I can't help to feel that they are saying it because they have started investing in Tesla before covid-19. Since then, they have made about 750%.
So whatever happens, it will still be a low risk for them.
But for someone who has no positioning yet, is this too much of a risk?
Is it better to wait for a pull back as $372 is overvalued?
Dont get me wrong. Tesla is good but is it right time now?

Discussion (3)

What are your thoughts?

Learn how to style your text

Daniel Kok

15 Sep 2020

You should have seen the recent increase of 12% within a day. It's building the hype of Tesla battery day where Elon musk promises something big.

it will be a stock for trading but definitely not for long term holding.

Save

Justin Mok

15 Sep 2020

Bachelor of Business Management at Singapore Management University

Like every other asset on our planet,

If you approach it with an investment thesis, backed by evidences, research, due diligence, and some foresight for the future, it is investing.

Approach it with a 'get rich quick mentality', emotion based investing (FUD, FOMO), game of luck/chance, then it is gambling.

Of course, nothing is 100% risk-free, that is why opportunities exists.

Formulate your thesis, invest with conviction, review every now and then, check whether if recent developments aligns with or reinforces your thesis. Otherwise, if things start to deviate, don't be afraid to sell it. There is a reason why some people are still holding onto their positions. They are convinced that there is still a long runway for growth. Otherwise, wouldn't it be tempting to just exit their positions and run away with the profits? I would certainly do that if I don't have a clear sight of where my investment is heading. But for now, I'm still convinced Tesla will be the future :-)

Just take it slowly, spend some time doing your DD, then invest. Don't get too caught up by the meteoric rise of Tesla if it happens in the next few days. Try to get your thesis straightened out first.

All the best!

Save