Tesla dealerships are getting protested and, in some cases, vandalized. Sales are down on 9 of the top 10 countries Tesla sells in. Yet Tesla stock is up. Twitter is a cesspool of nazi-themed bots, and somehow just pulled in $1bn and raised its valuation back up to $44bn.
How is any of this possible? It seems really artificial to me, but I don’t really understand business.
When highly profitable companies are valued less than companies like Tesla just confirms that in the stockmarket the rules are made up, and the points don’t matter
It’s market manipulation of the highest order. It’s not legal but no one is going to do anything about it.
He gave his stock on those companies as collateral for bank loans and he needs those stocks to hold value otherwise the banks will call the loans and will reduce Musk’s ownership of his companies
That could just as well be the reasons those banks want those companies to have an inflated value.
If those companies lose much value there will be a lot of mess and no one involved is going to get richer of it.
These days a CEO is pretty much someone that markets a company towards the shareholders. Elon is a pretty good marketeer.
Was. He was a great marketeer. And then he crashed his brain and is ruining everything he built.
A good marketeer? Are you fecking serious?
Yes, his track record shows he is. He was able to create a brand for himself that made him the richest man alive.
I don’t think I can think of a better metric.
While it’s true that half of the world thinks he’s a shithat the other half thinks the man thinks this man embodies some kind of good.
I fell for it to, back in 2016 I thought the man was going to do great things for humanity
Musk is a threat to the integrity of the USA and is a dumpster of a human being but he knows how to navigate the circles of government, politics, and investors and gets those people to believe in him and let him do whatever he’s been doing
That’s what we call the dead-cat bounce. The further and faster a stock price falls, the more people think it will go back up and buy in at the new low price, thus at some point there is a short-lived reversal of the decline before it continues as it was. Although much of Tesla’s value recently was from a big jump in November (getting a fancy new oval-shaped office will do that for you), so this is likely as much a correction of that overreaction as it is some protest of or loss of faith in Musk.
Although much of Tesla’s value recently was from a big jump in November (getting a fancy new oval-shaped office will do that for you)
I don’t think many people realize just how big a jump this was.
Yeah, the price nearly doubled. But then it all came crumbling down again. I doubt it will go much below where it was before for long, but I could be wrong.
It’s the largest pump and dump scheme in history and it’s being done in the open.
Yeah, they are literally begging maga idiots to buy TSLA to keep the price up while executives are unloading shares. International sales completely gone. Domestic sales declining. Cybertruck flopped. Tariffs are going to cripple their production. Competing EV are making TSLA look like amateurs. Like, what’s the upside?
After convincing them that EVs were trash no less.
Roll coal!!!
Nah. I have an ev and love it, but it’s not a Tesla.
Haha, I’m just playing, poking fun at the fact that the right loves to shit on EV’s.
The value of a private company is a number that can be pulled from their ass, right?
Before: there was an idiot that wanted to pay $54.20 for each of the 800 million publicly traded shares = 44 billion valuation even if the yearly earnings after all expenses (EBITDA) was only 680 million (data public, as required by sec) so the board sued that guy to force him to pay when backed down as that valuation was insanely high and the board would never get such a big golden parachute
Now: we don’t need to publish financial data anymore but CEO says that the company is super profitable, valuation is back to 44 billion, trust us 😉
It is corruption and market manipulation at the highest possible level because americans elected an russian asset into the office. Shortly after a treaaonous judge claimed president can do whatever they want. And aparrently you are only allowed to stop crime when it’s occurring, not treason.
The PE ratio for most established carmakers is near 7. Tsla is near 120 last I checked. Some bubbles pop.
Like when Tesla started lying about their cars fully driving themselves?
Fascism. Once a p single private interest controls the government, they can effectively do whatever they want in the private sector, making them a sure bet for investors
You are not wrong. Elon Musk is the PR man for the companies he either founded or have a majority of shares in. However, his companies’s products and services are not actually superior to his competitors. Take Tesla, the cars are not road-worthy, they are expensive, the battery sets on fire more often, and uses inferior image-detecting camera when driving automatically. Meanwhile, Chinese competitors are cheaper, more safe and use better LIDAR technology for automated driving (but only because the Chinese government heavily subsidise in EV companies making their cars far superior).
So, as someone already mentioned, hype up your company and convince anyone to buy shares, then your companies’s valuations increase tremendously. It creates the illusion that your company is productive and valuable when in reality it is not.
The stock market is not the real economy.
- https://www.nasdaq.com/articles/the-stock-market-is-not-the-economy
- https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/wall-street-versus-main-street-why-the-disconnect
- https://www.schwab.com/learn/story/why-stock-market-is-not-economy
- https://advisor.visualcapitalist.com/wall-street-vs-main-street-the-stock-market-is-not-the-economy/
Unironically also part of the reason why these fuckers are completely morally bankrupt.
I’m of the opinion that we are on the brink of a facism that makes the previous …
funny enough, fuck it
Russia, Saudi Arabia, North Korea pumping the stock.
If I’m not mistaken it was in 2020-2021, when Tesla stock prices when going gangbusters, Musk was saying it was overvalued. Given constant Cybertruck updates/recalls, general Tesla safety concerns, Ford and Rivian apparently doing well in trucks, and Mercedes apparently having the best self driving, all happening since then, I’m not sure why it should be valued exceptionally high. They had a good name in EV cars, now they have scary stories.
And that’s not even getting into politics and dropping sales, so, I’m not surprised the stock is trending down
