As Tesla Invests $1.5B in Bitcoin, Former Goldman Exec Ditches Tesla Stock
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Elon Musk is constantly finding new ways to engage investors in an even larger dream. He creates a mythology that drags people in with their capital.
The result is a great car company that I am so glad exists. But the stock price is a touch detached from reality and will fall the moment people pop out of the Elon Musk dream state. It’s a desperately risky bet on ever-improving prospects that may not arrive.
> the stock price is a touch detached from reality and will fall the moment people pop out of the Elon Musk dream state.
Well said. It's typical Ponzi scheme - it grows while the master keeps showing new focuses and attract new followers.
Wake up will be painful though.
The same logic was applied to amazon for like 10 years.
I'm sure all those people who invested in amazon regret it now that we had that massive crash and amazon has finally been reviled as a Ponzi scheme.
P.S: Does anybody else hate that the 'Ponzi Scheme' was once a specific thing and now everybody uses it in every situation where people could lose money. Please learn what 'Ponzi scheme' actually means.
I didn't invest in Tesla years ago, because of mythology, but because they had the right plan, in the right markets with the right CEO to execute on that plan. That is exactly what happened. There are simply not many markets so large and few companies that ever have shown consistent growth in those markets.
All the claims that people made to disagree with the Bull case simply didn't hold up to actual hold up under investigation.
Analysing their growth and operational leverage their investment were generating indicated that most analysts were totally missing the story, that a lot of the negatives would flip and that the stock would reflect that reality eventually.
I however am surprised how fast and heavy that flip happened.
However Tesla strategy continues to be correct, they are only have the freedom/cash to get into some next generation initiatives and I see a clear path to continued growth for years to come. The team around the CEO is only improving, Tesla is building expertise in literally everything, mining, chemical refining, material science, high speed manufacturing, chip design, various battery technologies like silicon anodes, aluminium die casting, deep learning and so on.
I sold some shares to cover my position, but the bull case is still much better then many people give Tesla credit for. The stock might flatten out again for a while as it did before but there is a lot of upside here. Maybe Tesla will fail to execute, that is true, but that doesn't make it 'desperately risky'. Any company, specially any growth company, might fail to execute. The question is how likely is that and how large is the upside if they do execute.
And even with all of those things in mind, I can help but wonder whether investors would give the company quite so much of their capital were it not for Elon Musk’s incredible ability to craft an ever-enlarging dream of the company’s future.
Many in the rocket industry, believe Starship could work reasonably well. If any other company even country had announced Starship, nobody would take it seriously.
History of success gives credibility for the next stage.
"But despite the hesitation, Black isn’t ruling out the possibility of buying more Tesla stock down the line.
“I’ve made a lot of money on $TSLA over the past 18 months,” he wrote, “and will look for a lower entry point to get back in.”"