The best thing about this is that Tesla is massively overvalued. Like, the stock price is more than 20x what it should be based on Tesla’s earnings.
If Tesla had a reasonable value, then hedge fund managers and other rich people would probably be buying it while it was temporarily down and getting rich as it went back up. But, with it so insanely overvalued, it’s much more likely they’ll short it or buy put options and hope to get rich when it finally crashes.
Yes, it was at something like 30x overvalued, now it’s only 20x overvalued.
Glad you mentioned Toyota. Their P/E ratio is approximately 7. Tesla is approximately 100. If Tesla were a well run car company with a lot of good vehicles and an anonymous CEO who nobody hates, the fair value of their stock would be about $14 per share. It’s currently $236 per share.
Someone is going to make mountains of money shorting Tesla stock, but unfortunately it’s going to be someone rich. The market can remain irrational much longer than normal people can remain solvent. Some rich dude is going to take the risk though and make out like a bandit.
The best thing about this is that Tesla is massively overvalued. Like, the stock price is more than 20x what it should be based on Tesla’s earnings.
If Tesla had a reasonable value, then hedge fund managers and other rich people would probably be buying it while it was temporarily down and getting rich as it went back up. But, with it so insanely overvalued, it’s much more likely they’ll short it or buy put options and hope to get rich when it finally crashes.
deleted by creator
Yes, it was at something like 30x overvalued, now it’s only 20x overvalued.
Glad you mentioned Toyota. Their P/E ratio is approximately 7. Tesla is approximately 100. If Tesla were a well run car company with a lot of good vehicles and an anonymous CEO who nobody hates, the fair value of their stock would be about $14 per share. It’s currently $236 per share.
Someone is going to make mountains of money shorting Tesla stock, but unfortunately it’s going to be someone rich. The market can remain irrational much longer than normal people can remain solvent. Some rich dude is going to take the risk though and make out like a bandit.
deleted by creator