What I learned from the new valuation and news from Tesla.


I have been a Tesla fan for years.  I made probably the best trade ever on a stock years ago when I bought Tesla after seeing the stock run up for multiple days.  I hopped in and rode the gains but then one night they reported earnings and I went on to earn about 30% over night.  It was amazing.  I used that money to pay off my student loan balance and enroll in law school.  From that moment I felt as though I owed Tesla loyalty for helping me get my life on track.

I went on to sing the praises of Tesla as it went from $100 per share up to about $280.  At that point I still believed it would run higher.  I was starting to see a ton of them on the road, they were improving their super charger network, and they were revealing development after development with the auto pilot, solar wall and solar panel tiles.  The sky was the limit.

Then for some reason the stock did the opposite.  Instead, what they did was turn around.  The stock fell from $280 to below $200.  At that point, the people who were shorting the stock the entire time it was running up came out to talk about all the reasons Tesla wouldn’t win.  At that point I started to doubt as well.

If you have been following the news, you would see that today Tesla ran up 7.27% to $298/share and is now valued more than Ford.  The news was that Tesla found a way to get around their delivery issue and delivered a record number of vehicles.


What did I learn?

I learned that successful people always find a way.  While TSLA was in it’s slump people had every reason why Elon wouldn’t win. The problem is that Elon is a billionaire and a highly successful person.  He has the drive to find a way and the dollars to back it. Why anyone would bet against that boggles my mind.

This is significant because there are two great companies I am watching and fighting popular opinion as I do it.  Those are Under Armour and Snap.  Both companies have very capable CEOs but their stocks have taken a beating.  Like Elon, they have cash, the resourcefulness to strategically deploy that cash, and they have a strong team of advisers.  Why anyone would want to bet against that, boggles my mind.

What I learned is that sometimes great companies can be ahead of their time, make a ton of money, and then return back to glory.  What we saw with Tesla might be what we are seeing with UA.  I was able to make a ton of money in UA as they ran up and proceeded to split the stock twice.  Now, we have seen the price fall dramatically.  If you aren’t willing to buy a stock that gets hit after it gets hit then you shouldn’t have bought it initially.  I think that because we believed in UA when we bought the high we should feel the same way now that it is at a low.  It might take some time to get back but it can and it will.  We want to make all that money because there IS money to be made.

If you have been following me for any length of time I am always skating to where the puck is going.  I invest for where the world is going.  That is where millions are made.  If you are interested in investing to win and not to lose, come over to Todd Capital.  We are minting millionaires and I want you to be one of them.  Email us at info@capitaltodd.com

Leave a Reply