• Pringles@lemm.ee
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    6 months ago

    Tesla was overvalued when it hit 50$ pre stock split. Its continued rise over a period of years to one of the most valuable public companies is just mind boggling. But I think even now there is a lot of hesitance in shorting the stock as entire fortunes have been lost trying to predict a share price correction.

    But we’re about to find out whether Tesla truly transcends auto companies: https://bradmunchen.substack.com/p/could-tesla-go-bankrupt-the-odds

    • Hypx@fedia.io
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      6 months ago

      Tesla is nothing more than an elaborate stock pumping exercise built on a business of selling crappy cars to techbros. It’s valuation is propped up by lies, hype and virtual signaling. It also can’t survive without copious amounts of government subsidies and low interest loans, since the car business is so capital intensive. At some point, all of these problems will come to a head. It’s a matter of when, not if, that Tesla collapses in some form. Though it may be bought out before formally filing for bankruptcy.

      • NewNewAccount@lemmy.world
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        6 months ago

        The Model 3 and Model Y combined for more than 500,000 units sold last year in the US alone. Do you really think it’s only tech bros buying them?

        • demonsword@lemmy.world
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          6 months ago

          GM delivered five times that amount and yet Tesla is valued higher. It’s painfully obvious that Tesla’s stock is overpriced.

      • Blue_Morpho@lemmy.world
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        6 months ago

        I don’t think bankruptcy is going to happen. Despite economists’ theoretical ideals, stock price has nothing to do with a company.

        Tesla is selling cars at a profit whether the stock is $20 a share or $200. Long term the stock price should go to $20.

    • Fermion@mander.xyz
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      6 months ago

      When considering shorting stocks it’s important to remember one of Keynes’ better quotes, “the market can remain irrational longer than you can remain solvent.”