I guess there's a 90% chance he's right (Tesla is overpriced) and a 10% chance Tesla will be worth 50x in a few years. But I don't have the funds to act on that assumption.
If you want to guess the price a few months out, though, you can just buy options. If you think Tesla will be $35 by mid-January, you could buy a $30 call option for something like $2 a contract. If the stock hits $35 before expiration, you'll sell the option for $500 a contract. The downside is $2, the upside is $500.
I don't see any options chains for TSLA yet, though, so I am just making the first number up. But that's the idea behind options -- if you want to speculate instead of have equity in the company, buy or sell options. Much cheaper.
Given those probabilities it seem like a good investment.
Or for the less risky version, dollar cost averaging.
You use something like share builder:
Every month invest $100.
1month - $100 price of stock 25.0 Stock own:- 4
2month - $200 price of stock 20.0 Stock own:- 9
3month - $300 price of stock 20.0 Stock own:- 14
4month - $400 price of stock 10.0 Stock own:- 24
5month - $500 price of stock 10.0 Stock own:- 34
6month - $600 price of stock 5.0 Stock own:- 54
7month - $700 price of stock 5.0 stock own:- 74
8month - $800 price of stock 5.0 stock own:- 94
9month - $900 price of stock 10.0 stock own:- 104
10month -$1000 price of stock 20.0 stock own:- 109
Overall value of stock own is 109*20 = 2180.
Profit:= $2180-$1000 = $1180
This is an exaggerated example and I only have knowledge of dollar cost average in theory, so anybody have real world experience, jump into the conversation.
hmm...Risk a $1000 that can degrade to $0 or go to $50,000. The bottom is capped at $0, you cant do no worst, limited downside and unlimited upside. I think it's worth some disposable income.
