I’ve decided to sell my entire Tesla position and reinvest all the proceeds from that position into SpaceX where I already hold position since to the company IPO. This is a change within my portfolio not a move to put my whole portfolio into one company. 💭 My Thinking Part of my investment thesis is that Tesla and SpaceX could eventually become more closely integrated or even merge given their shared connection to Elon Musk. But I must separate what I believe could happen from what has been confirmed. A potential merger remains speculation and shared leadership alone does not guarantee one. 📚 The Investment Lesson An investment thesis is the reasoning behind buying or holding an investment. A strong thesis should answer an important question: Would I still want to own this business if the merger never happens? That means looking beyond the headline to the company’s growth, profitability, cash flow, valuation and ability to execute. ⚖️ The Risks I’m Taking SpaceX could underperform Tesla. Moving the proceeds into SpaceX also increases my exposure to that company, while keeping me exposed to risks associated with the same influential leader. Even if a merger eventually happens, its terms would determine what it means for shareholders. It would not automatically guarantee a profit. 💡 The Real Uncle Sam Takeaway This is my personal portfolio decision, not a recommendation to follow it. Conviction matters but it should remain open to evidence that challenges it. Would you invest in a company based on a possible merger, or would you need the business to justify the investment on its own? ⚠️ Educational purposes only. This content is not intended as financial or investment advice. The Real Uncle Sam Making Financial Education Simple. Learn. Invest. Build Wealth.
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2 Comments
Thang N
@thestockman35 · 14d
I did the same 1 month ago and I was waiting for SpaceX to go down to $100 to buy in. Still waiting.
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