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As far as pump and dumps go, this would make a very tiny amount of money for a company of Tesla's market cap. In another post someone said they made $270MM from
by hooande 5y ago
As far as pump and dumps go, this would make a very tiny amount of money for a company of Tesla's market cap. In another post someone said they made $270MM from selling bitcoin in Q1. On a market cap of close to $590B. And they can only really do that trick a few times at most.
I have no idea what the true motivation for Tesla accepting bitcoin was. But I would be surprised if a publicly traded company took this much risk for such a relatively small amount
- onlyrealcuzzo 5y ago$270MM was >60% all of Tesla's $480MM Q1 profit.
- hooande 5y agoIt's so unlikely that they can repeat this. Telsa is supposedly one of the most valuable companies in the world, as measured by market cap. There's no way they're depending on pump and dump schemes to sustain their profitability. If that were the case, they wouldn't have nearly as high of a valuation
- tarsinge 5y ago> If that were the case, they wouldn't have nearly as high of a valuation Market cap is just number of stock x unit price. Apart from giving a (very rough) idea of how much it would cost to buy the company, it doesn’t say anything by itself. You can choose to see it as how a company is valuable if you think the market is efficient for that. But that high number could also be an accident of a handful speculative traders, because a variation in price change the whole market cap. Like if I pre mine a 1B of a crypto token and sell someone 1 for 1$ my token will have a market cap of 1B$, but that money is nowhere. The stock market could be more efficient, but there is no guarantee it is at time t for every stock.
- mcguire 5y agoWasn't $270M Tesla's quarterly profit in January?
- heavyset_go 5y agoTesla's Q1 operating profit of $594M was slightly less than the sum of their $101M Bitcoin profit and the $518M regulatory credits they received[1]. [1] https://old.reddit.com/r/dataisbeautiful/comments/n0jxyt/teslas_first_quarter_visualized_oc/ https://old.reddit.com/r/dataisbeautiful/comments/n0jxyt/tes...
- nrmitchi 5y agoComparing market cap and revenue (let alone profit or free cash flow) is an apples to... potato comparison. Especially for Tesla (at a ~600x P/E ratio)
- chii 5y ago> market cap of close to $590B. comparing the earnings to their market cap makes no real sense. Comparing to their existing earnings or profitability of their existing investments makes way more sense.
- croes 5y agoEven Musk acknowledged that Tesla is overvalued.