Someone invested $25,000 in Tesla when it was worth $2 billion and sold at $7 billion for a 3x return. They later calculated that holding through to Tesla's trillion-dollar valuation would have turned that $25,000 into $6 million. The story illustrates the cost of selling early and the difficulty of timing exits.
I invested in Tesla when Tesla was at $2 billion and I put all the money I had straight outta college. I put it into Tesla at $2 billion and I rode it up till it was at $7 billion or something like that. And I cashed out at a 3x. And I remember at the time thinking, okay, General Motors, they were at $20-something billion. And I was like, one day Tesla could be, you know, half as big or maybe even as big as those companies. It just seemed like that was the roof. And then Tesla went up and became at one point a trillion-dollar company. My $2 billion could have become a trillion basically. How much did you put in? $25,000? Yeah, I had like $25 grand in it. I did the math at one point and this wasn't the peak, But at one point it was like I would've had $6 million from that.
