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Money & Investment / Re: We talk stock market here.......
« on: January 31, 2020, 07:47:37 PM »Should I risk it as well and buy Tesla when it's still low? I feel like something is gonna explode in Tesla to make them grow profiit
RS,
Before you begin investing, you need to learn more about the market and why you are buying into a stock. Most people just get lucky and select winning stocks because they are "hot." How they understand what is the exit is unsure too because most people have no price target to exit or an entry point. I got $$, so I need to spend it. For those types of investors, dollar-cost averaging is the best strategy because you don't know enough about the stock market to make winning moves.
Honestly, the whole Tesla bull case is quite complex. You have to believe that Tesla continues its growth pace, AI/ML car automation happens, battery expands, solar expands, etc... There are a lot of co-innovation Tesla is doing at once. In addition, there are regulatory hurdles that need to happen for some of his innovation to happen. Thus, due to the idea that co-innovation is highly risky, many of the hedgefund took big bets against Tesla and shorted him. For the last 6-8 months they've been wrong since 180ish...to 600ish.
With their great quarter, I think we will see $750 potentially with Tesla unless the overall market structure changes (big correction or recession). Should you invest in Tesla? I'm not an investor of Tesla simply because I think it's complicated. Would I short Tesla, no because his stock is too sexy to be shorted. I may if it dips below $575.
Watch the youtube video of Cathie Wood and her bull cash for Tesla $6000 price target...INSAN E, but she has one and I believe her if Tesla can execute. Essentially, Elon Musk would change the face of transportation if he can do this. Similarly, Jeff Bezos changed the face of retail and commerce with Amazon. The notion is called to invest in disruptive innovation. I practice this in my biotech trades.