The start of anything is always exciting. I'm excited about this. I wanted to take more risks 2019, this is one way to do it. This is Tesla2024, an experiment in investing.
The concept for the experiment is simple. I'm going to invest the principal that would be paid on a 2019 Tesla Model 3 into growth stocks for 60 months and see what kind of returns I can get. The only caveat for the investments is that I have to invest in at least one share of Tesla each month.
A lot of people are hyper-negative on Tesla and its economic future right now. There's probably some truth to this in the short term, but I think there are too many people who have economic interests in Tesla failing and they overblow the negative facts and fail to see the positives. The stock sits around $230 a share right now and I could see it crashing to $30 in the next five years if everything goes wrong. This is unlikely to happen but is possible. I could also see it shooting up to $800. It's a true risk play with a good potential growth story.
The way I see it, if I were to buy a Tesla Model 3 today for $42,000, it'd be worth around $20,000 when 2024 rolls around. If I were to invest $700 a month for 60 months, starting with $3,000 already invested, and averaged a yearly growth rate of -15%, I'd still have $31,000. So even in a highly negative case, I'm still going to come out ahead monetarily. It's hard to put a price on missing the experience of that electric torque for five years, but I think $11,000 feels about right for a worst case.
So, I'm going to take my chances and see where I end up. I could lose some money; I could also earn some money. I'll probably do a little bit of both during the experiment. No matter what happens, I'm going to learn a lot and improve as a writer in the process. I hope you enjoy reading about the experience.