Login

Tesla's incredibly high valuation illustrates something deeper about the stock market

Share on Facebook Tweet on Twitter

Posted by Wolf Richter - Business Insider

on Wednesday, 12 April 2017 17:20

58ee7ae48af57875038b7e4c-473Tesla shares rose to $313.38 this morning, giving the company a market capitalization of about $51 billion, surpassing GM for a moment as the most valuable American automaker. This left some industry insiders wondering about tulip bulbs.

“It’s either one of the great Ponzi schemes of all time, or it’s all going to work out,” mused Mike Jackson, CEO of AutoNation, the largest dealer group in the US. He was speaking at a conference hosted by the National Automobile Dealers Association and J.D. Power. “It’s totally inexplicable, as far as its valuation,” he said.

But he was wrong. It’s not “inexplicable” at all. It’s very explicable.

....continue reading HERE

...also from Wolf:

Bullish Case for Europe is a Classic Soros-Style False Trend


Free Subscription Service - sign up today!

Exclusive content sent directly to your Inbox

  • What Mike's Reading

    His top research pick

  • Numbers You Should Know

    Weekly astonishing statistics

  • Quote of the Week

    Wisdom from the World

  • Top 5 Articles

    Most Popular postings

Learn more...



Our Premium Service:
The Inside Edge on Making Money

Latest Update

A Buffet of Buy Recommendations

Notes From Michael - June 28th The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety)...

- posted by Michael Campbell

Michael Campbell Robert Zurrer
Tyler Bollhorn Eric Coffin Jack Crooks Patrick Ceresna
Ozzie Jurock Mark Leibovit Greg Weldon Ryan Irvine