Your theory is partially correct. Let's say Tesla is 10x overvalued. If the dumb believers weren't holding the stock, it would be 1x. This, as you said, is corr

Your theory is partially correct. Let's say Tesla is 10x overvalued. If the dumb believers weren't holding the stock, it would be 1x. This, as you said, is correct-- they're propping up the stock. However, Tesla isn't immune to short-term stocks. It will fluctuate between 5x and 10x overvalued, e.g, the stock should really be at $50 but is trading around 300-400. I'd be very happy if I shorted Tesla at $370 or whatever its high price was.