This is complicated and something you have to understand the stock market to even imagine. Certain stocks retain value way above what may be considered their value because of the propensity of other people to buy the stock. Tesla is something that falls into the realm of what people will call ‘shit beta,’ which is a stock that only has value because people know that it is volatile and will therefore have value. It’s hard to explain, but think about it as a diamond or a Birkin bag - it’s valuable because people think it’s valuable, way beyond what it’s actually worth. And as long as people think that it’s going to be worth one dollar more than it’s actually worth right now, they’ll buy it. It’s ridiculous, but here we are.
… . and Tesla stock is somehow STILL over-valued.
This is complicated and something you have to understand the stock market to even imagine. Certain stocks retain value way above what may be considered their value because of the propensity of other people to buy the stock. Tesla is something that falls into the realm of what people will call ‘shit beta,’ which is a stock that only has value because people know that it is volatile and will therefore have value. It’s hard to explain, but think about it as a diamond or a Birkin bag - it’s valuable because people think it’s valuable, way beyond what it’s actually worth. And as long as people think that it’s going to be worth one dollar more than it’s actually worth right now, they’ll buy it. It’s ridiculous, but here we are.