3 ms·
> The good news is that this rate of descent can't be maintained for much longer. "The market can remain irrational longer than you can remain solvent." ~Conf
by falcolas 4y ago
> The good news is that this rate of descent can't be maintained for much longer.
"The market can remain irrational longer than you can remain solvent."
~Confucius (probably)
Seriously though, there's no natural law, perhaps other than greed, which can stop a descent. Especially for something which was (is?) irrationally overvalued.
- jacquesm 4y agoWell, '0' would seem to be a hard lower limit. But I expect a floor at least somewhat above that unless even Tesla's assets end up being worth nothing. But that does not seem to be realistic to me. Even so, no matter what price: I'm not buying this stock because all it would do is give Elon tacit support.
- falcolas 4y agoTrue, $0 (more realistically $0.01) is the floor. > But I expect a floor at least somewhat above that unless even Tesla's assets end up being worth nothing. That's the thing though, the value of stocks is only tenuously related to the value of anything Tesla (any company, really) actually does, owns, or sells. It's value is solely based on what it can be sold for. And its sale price depends solely upon what someone thinks they can sell it for at a later date. So, aside from not going away (and buying its own stock), there's not a company can really do that can have a predictably effect on the stock price. I've seen too many stocks move solely based on the feelings of a few stock analysts, regardless of the company's achievements, to believe otherwise.
- jacquesm 4y agoThat's the reason I'm not in this game. I see no rational approach to trading in Tesla stock, it is bought and sold on sentiment more than on the underlying value.