• 0 Posts
  • 184 Comments
Joined 1 year ago
cake
Cake day: June 10th, 2023

help-circle


  • Plus the only places that are left to build giant factories are distant from population centers.

    You’re forgetting about eminent domain. Clearly, giant factory on American soil is a public good, even if it’s privately owned. Hence, the government will seize the homes and give the land to the corp. The prices of the houses will fall first, because who wants to buy a house that’s going to get bulldozed, reducing the compensation the government has to pay to the homeowners, potentially causing them to be upside down on their mortgages. This will leave them with nothing, or potentially even debt, when their homes get sized.












  • Market Cap of a company is sort of a meaningless number. As in, it’s shares in existence times price per share, which is just another way of saying its the share price. If somebody were to sell $100 Billion worth of Tesla shares, the market price would plummet and he’d not get the $100 Billion the shares were originally worth.

    Of course, a rule of thumb is that a company is worth 20 times it’s annual profit, or its revenue. So, by that valuation, Tesla is worth 28 Billion dollars, or 25.5 Billion dollars if we go by revenue. (I’m surprised that both approaches lead to results so close to each other) Compare with a market cap of 682,47 billion, we can see that Tesla is ridiculously overvalued. So, I guess you should go and buy puts on Tesla. Or sell your shares if you have any.