People whose job it is to know the value of things: "uh yeah Tesla stock is bullshit and this company is run by morons but it keeps going up lmao"
Maybe it had something to do with Elon trying to take control of the US treasury. Same reason stock went up when trump won. Pricing in the corruption
this
Libs love to say "you can't just take all the money from the rich, it's mostly stocks that would drop in value". As if the stocks don't represent the ownership of actual productive forces that will create value regardless.
In Musk's case, it's actually true. Most of his "net worth" is from overinflated stocks of a car company that has a tiny amount of the country's automotive market share and makes shit cars that fall apart.
If Tesla's stock crashed from Elon divesting to pay taxes, the cost of upkeeping USAmerican infrastructure would plummet without the global production of 10-tonne kampfwankeurwagens.
Stock prices are not a perfect reflection of real value. The price can easily be distorted by the beliefs of people with money, who can spend that money on Tesla stock to own the trans. This doesn't translate to wider market dominance or profitability of Tesla's bad products.
Stock prices are not a perfect reflection of real value. The price can easily be distorted by the beliefs of people with money, who can spend that money on Tesla stock to own the trans. This doesn't translate to wider market dominance or profitability of Tesla's bad products.
This is because capitalism is actually a bad price discovery mechanism for securities. In commodities markets corrections are quick because there's a real input-output happening to the commodity. A security's value is literally greater fool theory. You could rig a commodity market but you effectively need a near monopoly/monospony/cartel to do it over a long period of time. There is no "running out of stocks" because stocks aren't used for anything. So there's effectively no real floor for any security. This is exactly why they were able to do financial fraud for such a long time in 2008. The securities system crashes based on speculation and technicalities not realities, reality can help get it there but it's not guaranteed.
Because their CEO is the president's personal advisor now? Obviously? I guess JP Morgan can't just say "corruption lol" but come on
The market is no longer controlled by "rational investors" or capitalists. The market is controlled by computer systems automatically trading small amounts of shares but across millions of servers, almost semi-collaboratively working to ensure the endless growth of their assets.
They're even steeled against panic-selling because they don't usually have knowledge of news like this, that would encourage even a hardened trader to divest in the long term. Nope, keep the diamond hands and let others jump in on the growth train!
Even when errors combine into freak events like flash crashes (which have happened in 2010 and 2018, for example) these systems can very quickly reinvest liquid assets and cooperatively inflate the market back to where it's expected. Even in 2020 the market rebounded within like a year, compared to 4+ in 2008!
These investor types will never understand that the market does not have a "floor" anymore, it won't ever hit zero. It'll keep inflating itself indefinitely as it becomes more and more alienated from our material conditions.
My absolutely unfounded and uneducated opinion is: One day we'll be past the point of a "crash", instead we'll see the market get so absurdly disproportionate to the reality on the ground that it will tear itself apart trying to attain growth in some kind of inflationary spiral.
Just an addendum that I know little to nothing about investing/securities so take with a pinch of salt and/or correct me. Please!
My theory is under capitalism we've raised a generation of failsons who were badly educated, but because of their wealth, have significant impact over financial markets. These failsons all want to invest in flashy things and Tesla/Musk is the perfect magnet for that. It's a little idealist, but I feel you need to be idealist to explain why Tesla is completely divorced from its material reality.
and people say the ceo doesn’t contribute anything
I still remember when the stock split happened, and somehow re-reached the previous price within days.