Caporegime
- Joined
- 21 Jun 2006
- Posts
- 38,372
Tesla's future gains are already priced in. This was unexpected news but seems a bit of a fools errand.
For example. Company X has great potential. Everyone knows this. Their product is the future and they have a great team behind them. So even though they aren't making any money their share price goes through the roof based on future projections.
Then some good news comes and it goes up again. But wait a minute. This was already accounted for in the first place it's just more money on top of what's already an overpriced stock.
It's why people say buy the rumour sell the news. But this seems to be a case of just buy more when the news is released. That's not sustainable going forwards even if it does hold. I just don't see how.
Is Tesla even profitable yet especially with the chip shortage and all? Seems like another evergrande when one day they will get too big and those loans will be called in.
For example. Company X has great potential. Everyone knows this. Their product is the future and they have a great team behind them. So even though they aren't making any money their share price goes through the roof based on future projections.
Then some good news comes and it goes up again. But wait a minute. This was already accounted for in the first place it's just more money on top of what's already an overpriced stock.
It's why people say buy the rumour sell the news. But this seems to be a case of just buy more when the news is released. That's not sustainable going forwards even if it does hold. I just don't see how.
Is Tesla even profitable yet especially with the chip shortage and all? Seems like another evergrande when one day they will get too big and those loans will be called in.