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Sure, stock prices are forward looking. However, nothing what you wrote is new information. All this was priced in BEFORE Tesla's stock price quadrupled again.
by jpdus 6y ago
Sure, stock prices are forward looking.
However, nothing what you wrote is new information. All this was priced in BEFORE Tesla's stock price quadrupled again.
- grecy 6y agoBut now they have a factory in China, the one in Germany is going ahead quickly, and they just announced the one in Texas. Before they promised very rapid growth, now they're actually doing it.
- zaroth 6y agoFuture-looking means considering both upside and downside. A company like VW and GM is all downside. Back when TSLA stock was at $200, TSLA had a lot of perceived downside as well. The "word on the street" was... - That Tesla would be going bankrupt any day now. That they were insolvent. That they were "structurally unprofitable". - That Elon was personally broke and was about to get margin called on his lavish lifestyle and multiple mansions. - That no one would buy a Model 3 without the tax credits. - That the factory in China was just a mudfield and a marketing campaign. Today TSLA has now cleared hurdles for becoming ~0.8% of the S&P500, which opens up ETF demand for an estimated 25 million shares, and is uniquely showing growth in the most challenging auto market in history.
- jliptzin 6y agoThe price was artificially low due to abuse from short sellers who have finally given up over the last few months. You can see based on the chart of short interest vs. stock price. Now it may have swung in the opposite direction, the stock seems to be crashing up due to gamma squeeze. But in my opinion if you are a long term investor (5-10) years the stock is still undervalued.