Blaine's Morning Porridge comments on Tesla and Hertz stock prices. Apparently Tesla is now worth a zillion dollars, and Hertz is making big gains by riding on their coattails.
Tesla will only continue to be a worth a zillion dollars as long there are fools to buy the stock. At some point a large holder will cash out and price will collapse and the stock price will go through the floor. The only question is when. It might be this week, it might not happen for 20 years.
I suspect the trading volume is miniscule. If there are only a few shares for sale, it doesn't take a very many crazy people to drive the price into the stratosphere.
I suspect a lot of this is due to torrent of money flowing out of Washington D.C.
2 comments:
Or Musk will do or say something stupid, which has happened before.
Yahoo Finance says of Tesla stock...
Shares Outstanding = 1 Billion
Float (shares available for trading by the public) = 813.27 million
% Held by Insiders = 18.96
% Held by Institutions = 41.20
Martin Eberhard and Marc Tarpenning founded Tesla. Musk came in as a venture capitalist, became Chairman of the board, and pushed the others out. Eberhard sued and the settlement allows Eberhard, Tarpenning, Ian Wright, JB Straubel, and Elon Musk to claim the title co-founder.
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