
2025-06-06 17:16:17
I know some of the money is thinking what @… says here. The trouble here is that Tesla is currently wildly, absurdly, comically overvalued wrt its fundamentals, and there are really only two rationalizations for that:
(1) Musk is a brain genius who will innovate the company into magic unicorn fairyland of world domination.
(2) Musk has Trump on a leash and will reap the benefits of kleptocratic plundering of the US Federal budget.
Both of those justifications depend on Musk remaining at Tesla. If he leaves, there’s little reason for the P/E ratio not to correct to normal car company levels — which AIUI would mean a stock price drop of >90%.
https://hachyderm.io/@zzzeek/114637505037473139