it’s based on what people think the company will be worth in the future
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 worth of the company makes no difference.
Hector@lemmy.world 2 weeks ago
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.
Ilovethebomb@sh.itjust.works 2 weeks ago
As someone on r/Wallstreetbets once said, I can stay irrational longer than you can stay solvent.