About a year ago when TESLA stock plummeted to the $135 range, I told myself it was a must buy. My initial plan was to throw in about $40,000 to get about 300 shares. However, most of my funds were invested in bitcoin at the time, and I was actually not in a comfortable position to sell any of it. Since then, bitcoin as well as Tesla stock moved up nicely, and I would like to compare how much more I could have made if I sold $40,000 worth of bitcoin last year to buy 300 Tesla shares.

Profits I could have made with that $40,000 with Tesla stock:

- Investing $40,000 into Tesla stock at the time when it caught my eyes would have given me about 300 shares initially.

- Tesla stock since then recovered nicely and skyrocketed to $2,230 in the Summer 2020.

- Tesla brought down the share price to more manageable $445 by performing its 5 for 1 stock split.

- By now I would be owning 300 x 5 = 1500 Tesla shares.

- Tesla stock once again moved up strongly towards $690 prior to its S&P 500 debut. 

- My 1500 Tesla shares should be worth around $660 x 1500 = $990,000

Profits I actually made with that $40,000 in bitcoin:

- The bitcoin price was a little less than $10,000 at the time so I will just say 4 BTC.

- Now the bitcoin price is around $23600 which means my 4 BTC is worth about $94,400.

What I learned from this recent experience?

I still think bitcoin would eventually outperform Tesla over the next decade or so; however, my last year's decision literally blew up huge potential earnings for me and I seriously regret that I did not diversify my investment. I could have been about $900,000 richer now if I had put in $40,000 into Tesla last year, which I almost did.