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it’s based on what people think the company will be worth in the future
Not a single person in their right mind thinks that Tesla will ever be worth its current $1.3T market cap. Stock price is based on whether the market movers (not you or I) think that the price will be higher or lower a few weeks/months from now, that’s it. The actual intrinsic value/worth of the company makes no difference.
There’s enough people who genuinely believe the company is worth that to keep the value high for a very long time.
I don’t think there are. I just think there are a lot of people who believe they’re going to be able to get in and out before the Tesla bubble pops. Actual, realistic value of the company has nothing to do with it.
Not a single person in their right mind thinks that Tesla will ever be worth its current $1.3T market cap. Stock price is based on whether the market movers (not you or I) think that the price will be higher or lower a few weeks/months from now, that’s it. The actual intrinsic value/worth of the company makes no difference.
As someone on r/Wallstreetbets once said, I can stay irrational longer than you can stay solvent.
There’s enough people who genuinely believe the company is worth that to keep the value high for a very long time.
I don’t think there are. I just think there are a lot of people who believe they’re going to be able to get in and out before the Tesla bubble pops. Actual, realistic value of the company has nothing to do with it.
“greater fool” theory. Just gotta get out and leave someone else holding the bag. Easy to see with crypto rugpulls.
That’s also a possibility.