• zifnab25 [he/him, any]
    ·
    4 years ago

    P/E on Tesla was over 1600. The "traditional" P/E value of a large business ranges from 15-30, depending on how bullshit bullish growth-oriented investors happen to be. Shy of an absolutely explosive growth in Tesla earnings, there was never any serious doubt that it's share price would need to deflate at least somewhat. It was riding the same short-squeeze bubble that GME enjoyed, abet over a longer time horizon and with a bigger pool of ultra-wealthy fanbois backing it.

    Tesla's stock price is not its "profit". If Tesla loses 90% of its stock value in the next year, it will still be somewhat overvalued from a traditional investor lens. And while Elon will no longer be The World's Richest Man, he'll still enjoy annual dividend yields that dwarf the wealth of nations, simply because he's got the American patent system to leech off of.

    • Galli [comrade/them]
      ·
      4 years ago

      both bitcoin and tesla are overvalued due to elon's personality cult creating demand.

      of the two, the one least based in material production and assets is the most valuable.

      this is the best possible economic system