this post was submitted on 15 Sep 2025
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The price isn't based on what the company is worth, it's based on what people think the company will be worth in the future. Clearly, a lot of people believe that truly autonomous vehicles are just around the corner, and AI is going to revolutionise everything.
They're most likely wrong, but it will take a long time for the market to accept that.
No rational person would think that Tesla would command the majority of that market of autonomous vehicles, robots, or whatever. Especially not after their Flagship truck turned out to suck in like 20 different ways.
As someone on r/Wallstreetbets once said, I can stay irrational longer than you can stay solvent.
Not a single person in their right mind thinks that Tesla will ever be worth its current $1.3T market cap. Stock price is based on whether the market movers (not you or I) think that the price will be higher or lower a few weeks/months from now, that's it. The actual intrinsic value/worth of the company makes no difference.
As someone on r/Wallstreetbets once said, I can stay irrational longer than you can stay solvent.
There's enough people who genuinely believe the company is worth that to keep the value high for a very long time.
I don't think there are. I just think there are a lot of people who believe they're going to be able to get in and out before the Tesla bubble pops. Actual, realistic value of the company has nothing to do with it.
"greater fool" theory. Just gotta get out and leave someone else holding the bag. Easy to see with crypto rugpulls.
That's also a possibility.