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Comment by aurareturn | Hacker News Reader

  The 1 trillion dollar package the board is offering Musk is a joke. They need to find a new CEO.

It's an attempt to rally the stock. It's tied to a $8.6 trillion valuation. It's basically a stunt for the public.

Problem for Tesla is that Musk is the reason it has a 200 P/E ratio (and increasing at that). Without Musk, they are likely to go all the way down to a 15 P/E or less ratio in my opinion because they're decreasing in growth. That'd make them go from being worth $1 trillion today to just $75 billion instantly.

I don't own TSLA but it could crash the market if it drops that low.

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> Problem for Tesla is that Musk is the reason it has a 200 P/E ratio (and increasing at that).

The reason for the ratio is because he overpromises and lies all the time. The valuation is now hinging on Tesla being a leader in robotics when Musk doesn't even understand what sensor fusion is. But Tesla's astronomical valuation is a liability for them because it's the result of Musk defrauding both Tesla's customers and investors. The big number looks great but it's based on a fantasy.

> I don't own TSLA but it could crash the market if it drops that low.

TSLA is about 2% of the s&p. If they crash I think the market will shrug that off easily. Tesla's (lack of) success is not tied to the health of the larger market, and everyone knows they are overvalued so there would be no surprise factor either.

It's not about how much of it is the S&P. It's about sentiment.

I agree with that but I also agree that everybody knows they are overvalued. A Tesla crash is unlikely to spook the market that much.

The mother of all meme stocks collapsing would trigger people to exit all very risky equities.

I doubt it.

I don't doubt it.

PE is no longer relevant to these type of stocks. Because they print like crazy. This is not 1980 or 2001.

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