Tesla… should you sell quickly, so you don’t miss out on the falling price? (0)

Tesla shareholders have made a great return over the last 2 years, in some cases 15 times their original investment. Quite a few Tesla millionaires have been created.

There is a chance to make a lot of money as the share goes down, but only if you get in at the start, while the price is still high. However, since November, the share price has already tanked 20% and according to experts it looks set to fall a long way.

More or less all the top experts have been writing that they see a price fall which could even go down 10x its current value, which would then be realistic for the size and income prospects of the company.

That would mean if you sell your shares now, you realize a profit. Or if you sell short you keep the falling price difference (ie. this technique means instead of buying new shares, you “sell” borrowed shares now, then buy them back later at a lower price and keep the difference).

If the price falls from 1000 Euro to 100 Euro, excluding any costs and fees, you earn 900 Euro for every 100 Euro you invest. If that is leveraged, which is a standard stock market practice although considered risky, at 3x the price, again excluding costs and fees, for every 100 Euro you invest, you earn 2700 Euros. Investing 10,000 Euro selling Tesla short, could become 270,000 Euro by next year if this scenario is realized.

There are shares available on the UK market, for instance, created under the brand Granite Shares, which allow you to take this position and your potential loss is limited to the same amount you invest, like buying a normal share. Therefore a potentially huge win comes with seemingly more limited risk.

Keep an eye on these falling Tesla shares and if you make clever decisions now you can avoid missing out.

Note. This is not investment advice, Harju Elu does not recommend buying or selling shares and this article is reporting on the financial market based on the opinions of others.

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