Stock value is only loosely based on reality.
P/E, more specifically. Share price is only loosley related to earnings per share. In theory, we should infer that the market still thinks TSLA is going to grow earnings per share by at least 140% annually. That seems… unlikely.
People think sales will rebound once people get over it
He said there’d be millions of FSD Tesla robotaxis on the roads next year during the earnings conference call and idiots believe it.
The value of the stock has always been bullshit. Based on actual numbers, it should be worth less than $30.
It’s a meme stock now, much like Gamespot or AMC. Gambling, basically.
Now it was always a meme stock.
It peaked December 17th at 479.86 before the whole Trump/DOGE thing.
Since then it has lost 241.89 or 50.4%. Half it’s peak value in 4 months.
Some people still love Elon. And the investors probably don’t mind Elon having his fingers uo the government that’s supposed to regulate his company
Boomers are trying to retire and their 401ks are pumping the market.
It would be a lot worse if people 1, did their own research into who they invest in. And 2 if one of the wealthiest demographics in American history wasn’t all about to retire.
Even with the current market being what it is because of the sheer idiocy of the regime, boomers will keep pumping into managed 401ks or ETFs as long as the company is matching to maximise their returns for retirement.
Not really anything to do with boomers, if anything they’d be the ones selling because they are retired?
I mean I’m just a normal guy but yeah I max my 401k because of tax incentives.
When you retire you only sell stocks as you need it as the prevailing wisdom is that stocks always go up if given enough time (which is true if the dollar loses value too, see asset inflation). Also if you have enough assets you can borrow against them instead of using money. The short of it is that most these people aren’t fully exiting the market even if they already retired.
With your 401k, even if its unmanaged, you will have an option to distribute funds into various ETFs and target funds and index funds. A lot of people don’t bother doing much due diligence or even checking to see what companies are included in the funds and might only invest based on recommendations or historical performance. Its a very small minority of people that invest with some moral standard or with the long term in mind.
Many companies, mine included, limit what investments are available in your 401k. I think in general, it would be uncommon to be able to invest in any specific stocks for most company sponsored plans.
I am limited to a subset of available index funds, target date funds, that kind of thing. I don’t think there are any moral choices I could make, with the possible exception of putting all my money in an international index fund to divest from the US in general.
The sales haven’t really fallen that much. All the numbers you see are for net income. People still buy the cars and the company still turns a profit, just less than before.
Auto revenue is down 20%, that’s pretty significant
So far and that’s a decline for a “growth” company
It ran up because the market believed that Musk had access to Trump and could manipulate markets and regulations in Tesla’s favour.
And they were right. Then the nazi salute pretty much signaled the peak on Jan 20.
