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by cainxinth·4y ago·view on hn ↗
Tesla does have good fundamentals and a good trajectory as a car company. They make a product that people want, that sells well even with large margins, for which demand is expected to continue to grow.

The fact that the market ran up its stock price till the P/E went stratospheric doesn’t make their core business any less viable.

If Tesla stock crashes, it likely won’t be because of anything the company did, but because all bubbles eventually burst, and just about every market, from equities to crypto to trading cards and real estate is heinously overvalued right now and due for correction.

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> The fact that the market ran up its stock price till the P/E went stratospheric doesn’t make their core business any less viable.

Of course the highly inflated stock price doesn't make their business less viable. It does make it more viable! They've raised large amounts of capital at very favorable terms.

In any case, the point is that the price is quite dettached from those "good fundamentals".