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> And low interest rates (part of government stimulus). What do low interest rates have to do with this? All stocks are up somewhat due to low interest rates
by twblalock 6y ago
> And low interest rates (part of government stimulus).
What do low interest rates have to do with this?
All stocks are up somewhat due to low interest rates -- why should Tesla's stock be an outlier unless something else explains its rise over the past year?
I'd like to see some numbers on this, but I don't think most Tesla buyers finance their cars. I bet most pay cash. So low interest rates don't really explain their sales numbers either.
So, how do you think low interest rates help Tesla?
- WillPostForFood 6y agoBecause it is very difficult to get returns in traditional ways when interest is near zero, so money floods the stock market. If you are chasing appreciation, you aren’t going to bet on GM, or even Toyota, you are going for Tesla, Airbnb, or whatever is else is institutionally favored.
- twblalock 6y agoWhat do you mean by "institutionally favored"?