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Okay, and what was the market cap then? The valuation wasn't contingent on FSD happening (I do agree with your general point, my understanding of fraud is that
by hogFeast 5y ago
Okay, and what was the market cap then? The valuation wasn't contingent on FSD happening (I do agree with your general point, my understanding of fraud is that making those claims knowing they were impossible is fraud, so the question is whether he knew...it also isn't just a moral thing for human to do regardless of legality, he shouldn't have said it if he didn't know). I mean, no-one took those claims seriously. But when the market cap is $1tn then it is somewhat obvious that this isn't a "car business" anymore...it wasn't possible to justify that even if they made all the cars in the world.
- sethd 5y agoThe market cap at the time was under $50 billion and Tesla was bleeding money, a structured bankruptcy seemed like a real possibility at the time (before the FSD fraud raise).
- hogFeast 5y agoYep, I agree (I was short the stock). But the question is whether lying about FSD was a big part of the raise? I don't think it was, back then everyone assumed he was full of shit because he talked literal nonsense almost constantly (the number of topics on which he is a self-appointed expert is quite extraordinary). When the market cap is $1tn, that nonsense was behind the price.