Should She Cash Out? Woman Who Turned $1,000 Into $380,000 In Tesla Stock Asks The Ramsey Show For Guidance

Should She Cash Out? Woman Who Turned $1,000 Into $380,000 In Tesla Stock Asks The Ramsey Show For Guidance

From $1,000 to $380,000: Tesla Investor Debates Cashing Out for Mortgage Freedom

A Tesla (NASDAQ: TSLA) investor recently called The Ramsey Show seeking financial advice on a life-changing decision: should she cash out her skyrocketing stock to pay off her mortgage or continue holding onto it, believing in Tesla’s long-term potential?

A $1,000 Tesla Investment Turned Into $380,000

The caller revealed that she had invested $1,000 in Tesla stock back in 2011 during the company’s early growth phase. Without adding any additional funds, her investment has since ballooned to $380,000. Meanwhile, she and her family still owe $288,000 on their home, leading her to consider selling the stock to eliminate their mortgage debt.

The Risks of Holding a Single Stock

Financial expert George Kamel, a host on The Ramsey Show, was stunned by the incredible return but advised caution. He emphasized that holding such a large percentage of wealth in a single stock—even one as influential as Tesla—carries significant risk.

"As soon as you can get that house paid off and get out of a single stock, the better," Kamel advised, warning about market volatility and the importance of diversification. While Tesla has been a high-performing stock, price swings could significantly impact her gains if the market turns.

The Tax Implications of Selling

One crucial factor in the decision is capital gains taxes. Because her Tesla shares have appreciated significantly, selling them would likely result in a sizable tax bill. Kamel recommended consulting a tax professional to assess the potential impact before making a final decision.

The Bottom Line

The caller faces a difficult choice—secure financial stability by paying off her mortgage or continue betting on Tesla’s future growth. While her investment success is remarkable, the risks of holding a single stock and the uncertainty of the market make diversification and careful planning essential for long-term financial security.