Yesterday was one of those crazy Mondays: Tesla said in a securities filing that it has purchased $1.5 billion of bitcoin and that it expects to begin accepting payments in the cryptocurrency for its products in the future.
Market response? The announcement added around $100 billion to the combined market value of bitcoin and Tesla on Monday.
Right now, the market value of Tesla is roughly $800 billion, which means Tesla is trading at about 6.5 times the combined value of Ford and GM. This is despite the fact that Tesla has a relatively small fraction of the global auto market.
super-optimist Tesla holders will eventually be bag holders.
What’s more, Tesla has been recently losing in the Western European markets to Volkswagen which is investing heavily in the EV segment.
With a stock whose valuation doesn’t make any sense and a volatile asset class on its balance sheet, super-optimist Tesla holders will eventually be bag holders.
I hear many people saying “But Tesla is a great stock…”: Being good or great is meaningless without a notion of price.
