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Portfolio Update: New Subtraction (TSLA; May 13, 2013)

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Tesla

I picked up 260 shares of Tesla Motors (TSLA) last week, right before earnings. The stock has been on a tear since, and I decided to use today to take some profits. I’m not much of a gambler, and my preference for investing long-term is to invest, not trade. I’m a Dividend Growth Investor at heart, so I already know that TSLA doesn’t fit into my overall gameplan.

With that said, I took a gamble on TSLA, and it paid off. I originally purchased at $55/share, and offloaded 160 shares today at $87/share. Without accounting for commission, fees, and taxes, this is $5120 in gains. Basically, I cashed out so that I could get back most of the principal, and am now playing with mostly just the profits.

I plan on holding the remaining shares since I feel like Tesla is a long-term growth story. I’ll probably add more shares on dips, but at this time, I would like to re-focus on building back up my dividend growth portfolio. Also, I am working on saving up capital for Rental Property #3. I’ll admit, investing in a stock like TSLA is extremely exciting. I’m sure it’ll take me on a rollercoaster ride as well, though, so I have to remember not to get too distracted! Stick with the plan… this is just for side hustling. 🙂

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{ 6 comments… add one }
  • Progress TrapNo Gravatar May 14, 2013, 8:59 am

    Man, that’s a tasty gain. I bought my TSLA way back at the IPO at $20.59 for a nice 4.2x gain if I sold today. BUT I only bought 5 shares haha.

  • FI FighterNo Gravatar May 14, 2013, 9:53 pm

    Progress Trap,

    TSLA shot up to $97 early this morning and I was already kicking myself for selling too early. Then it closed at $82, so I don’t feel as bad 😉

    Wow, good job on getting in right from the beginning! That 4.2x gain probably helped catapult many straight into retirement. Congrats to all those who got in early. I was seriously considering buying calls before earnings… oh well, I’m still happy and can’t complain.

    Cheers!

  • The First Million is the HardestNo Gravatar May 15, 2013, 6:04 pm

    Nice trade! TSLA has been on a tear since their earnings call. I think there’s got to be a big pullback sooner or later, but right now it looks unstoppable.

    • FI FighterNo Gravatar May 19, 2013, 1:25 pm

      First Million,

      Yeah, I’m looking for a pullback soon as well. Even though TSLA doesn’t fit my dividend investing strategy, it’s hard to think it won’t succeed long-term. I would hate to miss out on a hyper-growth story… this company seems to be firing on all cylinders right now!

      Cheers!

  • IntegratorNo Gravatar May 25, 2013, 4:05 am

    Thats a nice gain. Its one of the reasons I have a very small stable of high growth stocks that don’t pay dividends…. they may give you very respectable capital growth over time… dividend stocks still pay my bills though…can’t forget who puts food on the table!

    • FI FighterNo Gravatar May 28, 2013, 11:55 pm

      Integrator,

      Yeah, it’s not a bad idea to have another stable of stocks that focuses more on growth. I agree, and feel like the dividend portfolio should be your “bread and butter”, but the high growth fund could also complement your investing goals.

      I don’t have any dividend stocks atm, but even last year, I always kept a growth stock like AAPL around. Once the AAPL story ended earlier this year, I decided to give TSLA a shot. If you can just find one gem from the lot, it’ll be worth it. I received $2000 in dividends last year combined, and TSLA has me up over $10k atm. It’s risky, no question, but it can be worth the gamble… especially if you are fully convinced of the growth story.

      Happy Hunting!

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