5 ms·

still 10x overvalued. if you go up 20x and deflate 1/2 you are still at a ridiculous level.

• tluyben2 5y ago
  Yes, this is nowhere near it needs to, and will, go to.
• jmpman 5y ago
  I agree with Tesla. Which other stocks do you think are overinflated?
  • ffggvv 5y ago
    basically any of the former “unicorn” tech companies that ipod any time in past few years. have pulled back a bit already but still 3x+ their pre pandemic levels despite business not being up that much which isn’t to say they aren’t great companies (they are) but still had unrealistic run ups
  • missedthecue 5y ago
    Doordash
• PhantomGremlin 5y ago
  The valuation game in Tesla is over. Elon won. The nature of the game changed once Tesla was added to the S&P 500. Now there is a lot of passive money that flows into Tesla stock on a daily basis.
  • jjeaff 5y ago
    That's a two edged sword. Yes, the passive funds initially all must buy up shares to even out their holdings. But they also must sell off shares if Tesla stock underperforms other members of the sp500 in order to balance out their holdings.
    • javagram 5y ago
      That’s not how the vast majority of index funds work. Most s&p 500 index funds are market cap weight, not equal weight. A fund weighted by market cap only needs to sell shares when/if shareholders decide to cash out of the entire fund.
      • jjeaff 5y ago
        That's not correct. If you are market cap weighted and Tesla prices crash, that lowers the market cap of Tesla thus making it a smaller percentage of the total market cap of the index. Or, if some of the other companies were to take off and increase their market cap, same thing, the fund will need to sell Tesla shares to redistribute the fund by market cap.
  • javagram 5y ago
    Being added to the S&P 500 does not prevent price discovery in the stock market. There are still enough active funds and active traders that stock prices can go up and down for stocks within the S&P 500, and sometimes stocks fall out of the index if they fall enough. Doubt that will happen with tesla anytime soon though unless there are some really bad announcements for their business or future.
• jjeaff 5y ago
  Overvalued based on what metric? I think it no longer makes sense to evaluate a stock based on earnings per share if that company never or almost never issues dividends. It seems the modern strategy of these mega-companies now is just a perpetual growth machine or at least the appearance of such. Investors prefer asset appreciation to get those sweet low cap gains tax rates. Or even better, the ability to borrow against your shares in order to perpetually defer taxes. So, overvalued in that it will never have enough revenue to produce a good return on investment by distributions to shareholders, yes. But overvalued in that the asset price will continue to appreciate and produce huge returns for a long time to come? That remains to be seen, but it has certainly done that so far.
  • ffggvv 5y ago
    there’s two classes of companies. FANG types which i agree with your sentiment. and then the likes of tesla and snowflake et all which can never live up to their values