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>Tesla has such a high stock price because of an army of Musk fans believing in him. Right, and they are not going to dump their shares. So the projected scarc
by Workaccount2 5y ago
>Tesla has such a high stock price because of an army of Musk fans believing in him.
Right, and they are not going to dump their shares. So the projected scarcity from that lack of supply is priced in.
I'm talking about price discovery, which is (as proved many times) independent of rationality.
- lottin 5y agoNot sure what you mean by "projected scarcity". A Tesla shareholder will sell their shares if what they get in exchange is worth more, according to their opinion, than the shares. This applies to Musk fans as well, the only difference being that Musk fans tend to value Tesla shares higher than regular investors and therefore will only be willing to sell at a higher price compared to regular investors. Is that "priced in"? Well, yes, the current share price reflects that, but that's exactly the point the OP was making—that Tesla shares are overpriced because Tesla fans systematically overestimate their worth.