• cm0002@lemmy.world
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    6 months ago

    The last 24 hours have brought a parade of humiliation for the world’s richest edgelord

    Damn, a CNN journalist wrote this? Are we sure‽ LMAO

    • merc@sh.itjust.works
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      6 months ago

      The thing is, those investors are in a Catch-22 situation.

      Tesla’s valuation is absolutely absurd. Even after all the value the stock has lost, it still has a P/E ratio of more than 100. Standard, boring, normal car companies that are well run have a P/E ratio of 7.

      These investors have convinced themselves that Tesla deserves to be thought of completely differently than other car companies because they have a genius in charge.

      If they ditch Elon, they have to admit that they’re just a normal car company, and the right price for their shares is $14 each or so, not the $270 it is now. But, if they keep Elon, they have to convince themselves that somehow their sales are going to turn around and their genius who happens to be a Nazi will somehow convince all the people who hate Nazis to buy cars from him.