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Tesla sells like 1% of the cars and has like 50% of the market cap, and it’s not because their margins are so high. All the market correctly predicted is that

Tesla sells like 1% of the cars and has like 50% of the market cap, and it’s not because their margins are so high. All the market correctly predicted is that the market would continue to incorrectly predict their value. As a mental exercise, imagine there’s a bubble that went on for 5 years. They sometimes go that long or longer. Do you not think 3 years in people would think they were seeing the market just having been correct the prior few? It would look exactly the way you view this.

tarsinge 2y ago
> All the market correctly predicted is that the market would continue to incorrectly predict their value. I don’t understand why so many don’t get this, especially after crypto currencies became a thing. The token can be DOGE or TSLA, the mechanism is the same, only marketing and PR content change, reality doesn’t matter. In fact Musk already said Tesla is not a car company anymore. Crypto opened the eyes of a lot of smart CEOs, and not in a good way, and investors look away as long as the dance continue.
- dehrmann 2y ago
  I don't touch crypto, but one thing I took away from its rise is thinking through what money actually is and what equity valuations actually represent.
  - layer8 2y ago
    Please share your insights.
dkrich 2y ago
This has been a phenomenon of the endless liquidity train of the past 3-4 years. People doing very stupid things with money knowing more is always coming. There are certain stocks like palantir that are very obviously in bubbles where the market celebrates its inclusion in a stock index and sends the shares up 15%. The CEO just self produced a video recognizing retail traders and using the term “tendies.” The mistake this cycle though has been to assume that won’t work