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The downgrade by Moody's is why the stock is down as much as it is, imo, as it immediately impacts the discount rate (aka cost of capital) and makes it more exp
by ry4n413 9y ago
The downgrade by Moody's is why the stock is down as much as it is, imo, as it immediately impacts the discount rate (aka cost of capital) and makes it more expensive for TSLA to borrow money. The impact of the investigation on TSLA's future growth/financials doesn't seem quantifiable right now.
- totalZero 9y agoIgnoring dividends and interest, the stock price itself is the market's approximation of the expected future value of a share. That's precisely how you quantify it.