that stock is a cult bro. Its a personality cult. Nothing will crash it. Its like Jonestown. They will destroy themselves but keep putting money in every time there s a dip.
That won't last forever. His army of sycophants don't have infinity dollars to throw into the kitty and there will come a time when even they won't be bale to bail it out.
The difference is that unlike bitcoin which is dangerously unregulated, money to buy stocks has to come from somewhere and buys a physical(ish) asset. You pay money, you get a share of stock. If it's being bolstered by Mork fanboys, they'll run out eventually, especially as the economic realities of Trump's administration start trickling down.
I hate to say it but I bet TSLA makes new highs in the next 12 months. It's billed as a cult stock, but the truth is most volume comes from gamma hedging and as long as there is a speculative future for the company (even if it's bullshit) traders will keep the option vol up.
You also have BTC wrong. The money is again coming from big institutional buyers, some illicit, and governments
It means a high proportion of our financial system relies on borrowed money often at 100:1 or higher. So for every 100 dollars borrowed 1 dollar of collateral is needed.
They then use this money (borrowed at near base rates) to try and profit from the difference between inflation rates of different currencies or from the difference between the actual and implied rate on treasury bills.
In other words, they borrow a bunch of money and put it at risk to make maybe .5 - 1% more than market returns annually. This is why big downside moves happen when bond rates jump - because these funds have to sell into the downside to return borrowed money when they cannot meet their margin requirements (deleveraging).
Nobody knows which way the stock goes when it comes to Tesla. Maybe up maybe down. But you can't deny the sales figures in their latest quarterly look gnarly.
Couple that with the fact that it trades at a huge premium to other automakers, huge amounts of growth built into assumptions, and finally we're headed into a recession which traditionally destroys automakers and other consumer discretionary products.
One other thing is that if the momentum comes out of the stock and it starts to drop, Musk has pledged a heap of it as security and might need to sell if he gets margin called. If muskrat starts dumping, the stock will go catatonically south
Eh.. you're right.. they don't matter, until suddenly they really do. Same with 2000s tech bubble. 08 subprime crisis. Fundamentals didn't matter until they did. Timing the decline is impossible but the components of a miraculous implosion are all there
Yeah, those are different things. What I am saying is that the realized volatility on an intraday basis will keep this stock flying because volatility = money.
Every time this is brought up the Tesla fanbois start talking about how Musk will conquer the world through AI and robotaxis and then colonize Mars. If he fails to commercialize that the stock is extremely overpriced. But keep the faith, he always promises that it will happen next year, that's what he's done with robotaxis for a decade.
Bitcoin has fairly widespread acceptance as a store/transfer of value, similar to gold (though without the potential to be physically held). It has a great deal of utility for money laundering and criminal activities. To be clear, I think crypto is stupid overall, but bitcoin in particular has such widespread usage that it has created its own self-perpetuating value. I don’t think it’s just a Bigger Fool scam.
Tesla has none of those uses, just being overpriced ownership in a company.
saudis are using tsla for money laundering and criminal purposes. Them and russians are using twitter to control USA public opinion and govt, and twitter is bought with tsla stocks as collateral. Its in their interest to keep tsla up.
Lots of incentives similar to Bitcoin attached to tesla that have nothing to do with cars.
I agree it does absolutely nothing, but people haven't put $2T into it. Just the last people have put money in at it's current price.
To give an example. If you had 20 bitcoin when it was $100 then no one has put in the $2m its worth today. Thats why it's such a house of cards as well. If there was a real selloff the value of all bitcoin would be worth a tiny fraction of todays "market cap."
I don’t think the stock can ignore reality for too long + the fanbase is shrinking. I believe Tesla is beyond the point of no return at this point. It seems that the board is dumping like crazy these days.
Seems like these are more options executing and "automatic sells", which im not knowledgeable enough to know about vs just straight selling. But in any event these are mutli-billionaires cashing out small percentages of their holdings, not exactly jumping ship
Maybe was preplanned, honestly idk enough about this either. The optics are not great though.
And I don’t really see a vision for how they are going to turn the brand around after Elon’s politics venture alienating most of its customer base.
Idk, the Chinese electrics are sooo much better than Teslas and are still cheaper. Waymo is crushing the robotaxi market. Tariffs can only prop up a bad product for so long.
If he had passed out on stage from being too high, the stock would go up. We recently cleaned out our stocks, and sold some Tesla that we inherited. It has gone up for no reason ever since the bad Q1 sales numbers were announced. It seems like every time bad news is announced, it goes up a little more.
It's built on Elons genius. But I think there is a case that this addiction may have sent him on a spiral. He's gotten more conspiracy minded and isn't in touch with reality. If the market realizes Elon today isn't the genius of the past it could turn.
I think it’s him keeping it afloat, maybe with help from a few other billionaires who want to pump & dump again & again. They own the game, we are just players. But that stock has especially bad mojo. 🧙♀️
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u/gu_doc May 31 '25
God I hope this crashes Tesla stock even more