this post was submitted on 14 Sep 2025
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No Stupid Questions
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So it's not just that. No stock truly exists in a vacuum. For example, you invest a ton of money into stock A and it does well. You then use stock A as collateral to buy stocks B, C, and D. Now stocks B, C, & D need stock A to stay high or they are at risk of having the loan fall apart. And then say stock C does really well, then you might use that ones value to loan/purchase stocks E, F, and G. And so on and so on.
All investment companies and most banks are like this: they don't sit on your money, they reinvest it. Some safe bets and some risky bets, all managed to hopefully balance out to net gains.
For a variety of reasons, Tesla stock has been selected as one of these safe stocks. And it's now believed that Tesla stock is involved in so many other trades and agreements and loans, etc that it can't go down. Not in a "it's physically impossible" sense, but in a "this is a house of cards and that one card is structural and the whole thing might collapse if we remove it" way. And also, because of its intertwined necessity, it keeps getting pumped by other means because the market needs growth and it's one of the "keystone" stocks.
It's a house of cards built upon gambling with the economy.