Good points. I don't think the difference between Tesla and most tech companies is just risk though. Tesla is definitely taking way more risk than "normal" bu

Good points. I don't think the difference between Tesla and most tech companies is just risk though. Tesla is definitely taking way more risk than "normal" but I think they are still getting a great price for equity. They're still trading at a nice multiple of revenue, especially considering debt. I think there is a real difference in how the money works. Tesla's equity was not, for the most part, poofed into existence by the market's expectations of future success. It was invested into the company. People wrote checks. Tesla built factories, made cars. The value of equity fluctuated and people made some market gains, but a substantial portion of the dollar value in Tesla right now was put there by investors. Google or Facebook never needed money. They needed a market for their shares, but they didn't need to raise capital. I think you're probably right about the narrow focus. More of the economy is more like FB and less like Tesla today. If Tesla has more/less capital available, they can put it to work in the way whiteboard economics works. Increase capacity, produce more units, R&D... Facebook can't. Financial markets can affect its share price, but they really don't directly affect what FB can/will do. My very long winded point is that the prevalence of fb-like companies makes money markets less reactive, and explain why prices are so high for assets. Big segments of the market can happily pocket increases in equity value, but they are supplier of capital, not consumers of capital like they're supposed to be.