It seems that every year I think we have finally reached the peak of crazy, only to be proven wrong the next year. The stock market and thus index funds, just like real estate, have only gone one way – up. Index funds became the blunt instrument of choice in an always-rising market. But you don’t have to be a stock market junkie to notice the pervasive feeling of euphoria.
I have a problem with both value- and growth investing demagogues. While value demagogues tend to believe any company that trades at a P/E above the market average is too frothy, growth demagogues claim that price doesn’t matter.
Low interest rates have messed with the temporal properties of the market and created a wormhole in time and in Tesla’s stock.
Traditional carmakers do have strengths in designing, assembling, and marketing cars. They can afford to make an enormous investment in EV and absorb the losses that come with them. But will they?
Examination of the potential success of Tesla, comparing it to Apple. What advantages Tesla has, and can Tesla become as successful as Apple?
Tesla bears make the argument that Elon Musk is similar to Elizabeth Holmes, CEO of Theranos, who resorted to deception and fraud. What would happen to Tesla if something were to happen to him?
After writing a 37-page opus on Tesla, I am often asked what I think of Tesla stock. Although I am a very enthusiastic Model 3 owner, I can equally see both sides of the argument around Tesla as an investment. This makes me neither bullish nor bearish, but someone who can foresee distinctly different paths for Tesla the company and Tesla the stock.
Elon Musk is an incredibly ambitious leader with seemingly impossible goals, who has changed the auto industry and accelerated human progress. His success is mostly dependent on the capital he can raise to finance his dreams, which is made possible by the faith people have in him and Tesla. However, it is difficult to tell which of his goals will turn into realities and when.
Autopilot has some useful features, but can be dangerous on roads with unclear lane markings. Is the autopilot Tesla’s greatest advantage?
People have a tendency to form tribes and stick to the views of that group, even if they don’t agree with them. Tribalism can be dangerous in investing, as it can lead to ignoring important facts and evidence. How to avoid this?