Comment by jqpabc123 | Hacker News Reader

Comment by jqpabc123 | Hacker News Reader

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"It's unbelievable that this guy's stock is this cheap. It'll never be this cheap again."

Proof on multiple levels that the primary skills of this administration are con artistry and fascism --- which are more or less the same .

The PE ratio of the typical auto manufacturer is around 10 or less.

GM, Ford, Toyota --- all less than 10.

The PE of Tesla is 115 --- and they sell fewer cars than any of the above.

By any reasonable measure for an auto manufacturer, Tesla is outrageously overpriced. And before someone drops Musk's line that Tesla is something other than an auto manufacturer, allow me to point out 90% of Tesla earnings come from the manufacture and sale of autos.

ETTD --- Everything Trump Touches Dies. Tesla is working to become the latest example.

One other thing that hasn't been heavily talked about: What $/share on TSLA will trigger margin calls on the massive loans that Musk took out collateralized by his TSLA stock. Once those get triggered, the snowball effect of market sales by the loan holders will accelerate the downward price trajectory.

As much as I want his house of cards to implode, I'm worried about contagion.

I'll never forget how his Twitter mass-layoffs initiated that same practice to spread throughout the tech industry (yes, it was coming, but he did "cast the first stone").

For better or worse, what Elon Husk does today, the rest of the stock market does tomorrow.

I'm worried about contagion.

Too late. Wall Street has been infected with MAGAtts.

The other day I read where some analyst said he maintained a "buy" rating on Tesla because he worried doing otherwise would hurt the administration's image.

> Wall Street has been infected with MAGAtts.

If true, then the market will soon be an ouroboros.

Will banks have the balls to trigger margin calls on a key player in a cruel and vindictive administration? I kind of doubt it. “Cost of doing business.”

> "It'll never be this cheap again."

likely true, as it will be even cheaper until it collapses. (in inflation adjusted dollars)

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