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Tesla is considered an infamously overvalued stock, and even Elon Musk has publicly questioned the price in the past. It has had the highest number of shorts fo

by nwah1 9y ago

Tesla is considered an infamously overvalued stock, and even Elon Musk has publicly questioned the price in the past. It has had the highest number of shorts for any stock. Despite making 1/100th as many cars as the big manufacturers, it has a market cap higher than Ford and GM. That is not exactly a great comparison. A normal blue chip won't fluctuate more than ten percent in a month, let alone in a day. But currencies are supposed to be more stable than stocks. EUR to USD over the past month has wildly swung from 1.17 EUR->USD to 1.19 EUR->USD.

paxpelus 9y ago
I agree with you, Tesla is a volatile and overvalued stock. My point was that such volatility is not unknown even to the US Stock Markets. I don't think a blue chip stock can be compared to bitcoin. It is interesting to see some big movement stock movements that happened in the past. http://www.investopedia.com/articles/stocks/12/most-shocking-stock-increases-falls.asp http://www.investopedia.com/articles/stocks/12/most-shocking...
dmichulke 9y ago
EURCHF begs to disagree ;-) Of course the large move there was caused by politics but the same holds for this BTC drop.
ringaroundthetx 9y ago
the -coin in bitcoin and the -currency in cryptocurrency are misnomers and skeumorphs simply to make an abstract concept more relatable than "transferable cryptographic hash units"
SimbaOnSteroids 9y ago
I believe Tesla's value has everything to do with what people believe Tesla will be worth in the future, simply because confidence in Musk is so high. I think there's this unspoken expectation that Tesla enters the Pantheon of Large Auto Manufacturers.
- nwah1 9y ago
  From a value investing standpoint, it is overvalued, but obviously tech stocks play by different rules. However, even for a tech stock, TSLA is very high priced. I wish them the best, and I truly hope they succeed, but it doesn't change the fact that the speculative value is super high compared to their asset value. That explains why it can swing wildly in price while Ford generally won't.

by nwah1 9y ago

paxpelus 9y ago

I agree with you, Tesla is a volatile and overvalued stock. My point was that such volatility is not unknown even to the US Stock Markets. I don't think a blue chip stock can be compared to bitcoin. It is interesting to see some big movement stock movements that happened in the past. http://www.investopedia.com/articles/stocks/12/most-shocking-stock-increases-falls.asp http://www.investopedia.com/articles/stocks/12/most-shocking...

dmichulke 9y ago

EURCHF begs to disagree ;-) Of course the large move there was caused by politics but the same holds for this BTC drop.

ringaroundthetx 9y ago

the -coin in bitcoin and the -currency in cryptocurrency are misnomers and skeumorphs simply to make an abstract concept more relatable than "transferable cryptographic hash units"

SimbaOnSteroids 9y ago

I believe Tesla's value has everything to do with what people believe Tesla will be worth in the future, simply because confidence in Musk is so high. I think there's this unspoken expectation that Tesla enters the Pantheon of Large Auto Manufacturers.

nwah1 9y ago
From a value investing standpoint, it is overvalued, but obviously tech stocks play by different rules. However, even for a tech stock, TSLA is very high priced. I wish them the best, and I truly hope they succeed, but it doesn't change the fact that the speculative value is super high compared to their asset value. That explains why it can swing wildly in price while Ford generally won't.