I mean, none of these people ever question Tesla’s valuation in the first place. Why is the stock losing all of this value?
Maybe it’s because Tesla sells a tiny number of units, cannot turn a profit without government subsidies, and produces by most accounts a really meh fleet of vehicles. There was no sane reason for it to be valued equally to the rest of the auto industry combined.
Even at half that value today, the number is beyond unjustifiable.
In trading we refer to tesla as a meme stock, or better, as shit beta. I have a theory a number of big interday players moved into memes when they started getting bigger, because the poor liquidity of the plays cause the market…. Because the people who sell the stock had to keep buying more stock to make the options they sold safer.
Tesla is up and down because it makes people money.
I mean, none of these people ever question Tesla’s valuation in the first place. Why is the stock losing all of this value?
Maybe it’s because Tesla sells a tiny number of units, cannot turn a profit without government subsidies, and produces by most accounts a really meh fleet of vehicles. There was no sane reason for it to be valued equally to the rest of the auto industry combined.
Even at half that value today, the number is beyond unjustifiable.
In trading we refer to tesla as a meme stock, or better, as shit beta. I have a theory a number of big interday players moved into memes when they started getting bigger, because the poor liquidity of the plays cause the market…. Because the people who sell the stock had to keep buying more stock to make the options they sold safer.
Tesla is up and down because it makes people money.