I know it’s really high. I know the valuation is insane. But it could be just starting. I have purchased 10 shares of Tesla at USD $19,780.

Tesla is likely to be within the S&P 500 by Sep. When it enters, it becomes one of the top twenty highest valued stocks within the index. I’m a big fan of index investing, and the amount of ETFs that will have to buy Tesla stock will be tremendous. It will be automatically included into millions of people’s investments.

I also know its doing well in China, one of the countries least affected by the pandemic. Tesla is a status symbol there, with Elon Musk greatly admired. Their lead there is insurmountable. The electric vehicle market there is tiny, but expected to grow quickly. It may become just as ubiquitous as Apple phones.

It’s also a bet that Joe Biden will win the election. If he wins, green companies like Tesla will be great beneficiaries. They don’t just make cars, they also make giant batteries, something necessary for clean power to be stored and distributed.

Another big plus is that people seem to simply love it. Enthusiastic customers are one of my big buy symbols. It’s impossible for me to try it myself, but the hordes of happy reviews are enough for me.

Tesla will be another long-term holding that I will add to if there is price weakness. I was deliberating between stocks or another bond for quite some time, but I eventually went with Tesla as it seems less risky. I don’t find it advantageous right now to take on more debt.

What a strange world we live in. A company with a price earnings ratio over 900 is seen as safer than bank stocks or bonds.

Let’s hope I earn enough to buy a Tesla for myself.

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