My largest market expenditure of the contest was Tesla Inc. and anyone that knows me wouldn’t be surprised at that fact. What got me first interested in this technological automaker company was at the beginning of second semester I had to choose a book to read for my English class and I chose an autobiography on Elon Musk, not knowing anything about him at the time. After learning about his leadership style and his sometimes absurd visions of the future, I was intrigued and looked into his various projects. I fell in love with Tesla because of its innovation, sleekness, luxury, and its courage to become the first American carmaker to go public since Ford had its IPO in 1956 (Motortrend.com). The beginning of my love-hate relationship with this …show more content…
An example of this is on February 14, 2017 the stock was worth $280, two weeks later and the stock dropped a whopping $30 to $250. At this point I had sold my 21 shares of the stock because I thought the market finally realized the company was overvalued and risky. Even though the company still had a hundred percent of my support, I panicked and sold my shares because that’s what everyone else was doing. That was the biggest lesson I learned from this contest, to not follow the others and play your own game. I fully understood my lesson and regretted my action when the company rose 30% to an all time high of $325 three months later. The main thing to take away from this information is that the electric car market is very volatile because of the limited research on the topic, the low number of producers, and people’s hesitation to accept change. Also, Tesla is a very overvalued company with even the CEO, Elon Musk, admitting it on May 26, 2017. “I do believe this market cap is higher than we have any right to deserve,” he told The Guardian. However, with many large investors such as Tencent that bought 5% of Tesla stock, the company is gaining recognition, stability, and reliability which are all bringing it one step closer to not being volatile anymore