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The crazy valuation of TESLA has more to do with the flight-to-stocks caused by the unprecedented dollar printing of 2020, combined with the "memeability" of th

by leppr 6y ago

The crazy valuation of TESLA has more to do with the flight-to-stocks caused by the unprecedented dollar printing of 2020, combined with the "memeability" of the brand and its CEO, than the fundamentals of the company.

tinco 6y ago
If that were true, that would mean all the rational (hedge funds?) are holding their TSLA stocks despite knowing that their value is largely based on fickle investors. Big serious investors must still own TSLA stock.. right? Why aren't they selling?
- est31 6y ago
  Nobody wants to leave the party before it's over.
- leppr 6y ago
  "Big serious investors" are also putting hundreds of millions into bitcoin. These are crazy times. There is already over 20% more dollars now than there was last year[1]. If you follow the news you can see the dollar devaluation is likely not going to stop. Lockdowns kept inflation under control by reducing money velocity, but eventually inflation will come and funds are preparing for it however they can. Rationality based on outdated models doesn't work when the environment is changing. [1]: https://fred.stlouisfed.org/series/M2 https://fred.stlouisfed.org/series/M2
  - tinco 6y ago
    Bitcoin do not represent shares of an actual operating company though. Bitcoin's value lies in how many people want to link their net worth together. Tesla actually has some sort of future final value, at some point it's going to be clear how many cars they're going to sell, how many engines and batteries and solar panels and AI modules and whatnot. At that point they're gonna pay dividends, and that's gonna decide a reasonable price point. And its current share price just doesn't make sense. What are people going to do when they receive 7 cents dividend per year on their 700 dollar stocks? Or is TSLA going to pull an Apple and constantly come up with different types of devices to sell? Forever?
- garmaine 6y ago
  A new coronavirus stimulus bill was just signed, pumping even more money in. Why leave before the party’s over?

by leppr 6y ago

tinco 6y ago

If that were true, that would mean all the rational (hedge funds?) are holding their TSLA stocks despite knowing that their value is largely based on fickle investors. Big serious investors must still own TSLA stock.. right? Why aren't they selling?

est31 6y ago
Nobody wants to leave the party before it's over.
leppr 6y ago
"Big serious investors" are also putting hundreds of millions into bitcoin. These are crazy times. There is already over 20% more dollars now than there was last year[1]. If you follow the news you can see the dollar devaluation is likely not going to stop. Lockdowns kept inflation under control by reducing money velocity, but eventually inflation will come and funds are preparing for it however they can. Rationality based on outdated models doesn't work when the environment is changing. [1]: https://fred.stlouisfed.org/series/M2 https://fred.stlouisfed.org/series/M2
- tinco 6y ago
  Bitcoin do not represent shares of an actual operating company though. Bitcoin's value lies in how many people want to link their net worth together. Tesla actually has some sort of future final value, at some point it's going to be clear how many cars they're going to sell, how many engines and batteries and solar panels and AI modules and whatnot. At that point they're gonna pay dividends, and that's gonna decide a reasonable price point. And its current share price just doesn't make sense. What are people going to do when they receive 7 cents dividend per year on their 700 dollar stocks? Or is TSLA going to pull an Apple and constantly come up with different types of devices to sell? Forever?
garmaine 6y ago
A new coronavirus stimulus bill was just signed, pumping even more money in. Why leave before the party’s over?