So true... "2) Perceptual Value (that is not intrinsic)" i.e. extrinsic value. This is the part that most stock investors don't factor into their equations but

So true... "2) Perceptual Value (that is not intrinsic)" i.e. extrinsic value. This is the part that most stock investors don't factor into their equations but is something that has a huge impact on how the stock is valued and priced. In general accepted accounting practices there is something called "good will" that is similar. And it's how companies account for the value that is in addition to the economic value of an acquired company. It's completely legal and correct accounting. I think financial analysts need to have something similar so they can at least try to price a stock correctly. Eventually all stocks find their true value. Right now people are thinking of a future where Tesla will dominate the car industry plus a few other industries. True or not that's where we are. In reality Tesla is no different than many growth stocks of the past. The difference is that it has a CEO that can promote his dreams to a very large audience on a very short time. People are then compelled to buy the stock and drive it up. I'm sure we'll see similar rising stocks like Tesla in the future. All this to say that this article is not taking all variables into account when pricing the stock.