Tesla shareholders are a rare breed, sometimes putting almost everything, and we mean everything, on the line in hopes of striking it big and making major waves in their own portfolios.
Jason DeBolt is one of those shareholders.
DeBolt, a shareholder since March 26, 2013, sold his home and bought around 10,000 shares. The additional 10,000 shares supplemented the 38,000 he already owned.
He began buying the 10,000 additional shares slowly over the last several weeks on margin, or using a loan from a brokerage to buy more shares, in the $128-139 range before the company’s most recent Earnings Call.
As of Thursday, he was up $250,000 on his most recent investment using funds from the sale of his home. “Closed out margin today with house proceeds. Have cash. Feeling good,” he Tweeted.
In an exclusive interview with Teslarati, DeBolt shared his inspiration for the bold move. He noted that Tesla’s attractive stock price was what inspired him.
“Mainly, the attractive Tesla stock price is what drove me,” DeBolt detailed. “It was just too cheap to ignore. Tesla’s stock price had dropped 76 percent from an all-time high of $415 to $101 in a little over a year. During this period, Tesla grew revenue by 51 percent, doubled its net income, rolled out FSD to tens of thousands of people, and began ramping up Megapack production at Lathrop.”
The developments Tesla made over the past year were too good to ignore for DeBolt, even as some speculated that CEO Elon Musk’s acquisition of Twitter had caused the spiraling of the stock price.
“Many Tesla investors blamed Elon’s behavior for having a role in the drop, but I was trying to find a way to get cash to buy more shares. Selling my house was the obvious answer,” DeBolt said. I didn’t wait to receive the proceeds from my house sale and used a margin loan to accumulate 9,500 Tesla shares before earnings, resulting in a $400,000 gain two days after Tesla earnings on those shares alone. I currently hold 48,000 Tesla shares.”
His investments enabled him to retire from his day job as a software engineer on January 7th, 2021, at the age of 39.
DeBolt’s journey with Tesla shares began long before that. DeBolt has supported Tesla since he saw the Roadster in 2009 and the early Model S prototype at the San Mateo Maker Faire.
“I ordered a Model S in 2011 and took delivery in 2013. I purchased thousands of shares for about $2 a share after seeing the Fremont factory and driving my Model S for the first time,” DeBolt said. “I continued buying shares when nobody wanted the stock. It was obvious to me that Tesla was going to disrupt the entire automotive and oil industries back then because EVs are fundamentally superior to gas vehicles in every way, and there were no serious competitors to Tesla back then. This is true today as well.”
After selling his home, DeBolt rented a new place near the beach in Los Angeles, California.
“There’s a bit more freedom. The last two years of retirement have been amazing. Still, I’m starting to look for something to build and do with my time, so I’m exploring areas such as machine learning, finance, and philosophy in addition to my ongoing Tesla research. My life is pretty dope, and I’m doing exactly what I want to be doing. I try to stay physically fit. I’m quite fortunate.”
Disclosure: Johnna is a $TSLA shareholder and believes in Tesla’s mission.
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