Replies

I like to keep an eye on the Exit sign, but the durability of the TSLA rally hasn’t made any more sense than Amazon’s decades before it made money. [wipes sweat from brow]

A former exec from the GM-Toyota joint venture that built the Fremont plant where Tesla makes cars in the US stated, in an op-ed three or more years ago, that the physical limit of cars per year the plant could make was much smaller than Musk’s stated goal.

Turns out, the former exec was wrong.

The after-market fadeout on Friday was what I’d expected to happen during the trading day — up almost $64 (iow, $256 for the pre-split version) during the day, down 12 1/2 in after-market trading. I suspect that it’ll open on Monday a little higher than the after-market close, then resume the always-fun roller coaster, or as Paul Kangas used to put it, the Wall of Worry.

Its addition to the S&P 500 (which oddly has something like 504 stocks in it ;^) meant the index funds had to soak up something like 160 million shares. Avg daily trading volume is about 43 million shares. Friday’s number was 75 million. A caution about this is, as the price goes up, the number of TSLA shares needed to weight each index fund correctly will fall so they’ll sell ‘em off.

Tesla’s Crazy Valuation in 1 Chart
Looks pretty bubbly to this Fool.
Timothy Green (TMFBargainBin)
Jan 9, 2021 at 7:20AM
https://www.fool.com/investing/2021/01/09/teslas-crazy-valuation-in-1-chart/

OTOH

Billionaire investor Chamath Palihapitiya predicted Tesla stock will triple and Bitcoin will soar 5-fold in a recent interview. Here are the 15 best quotes.
Theron Mohamed
Jan. 9, 2021, 12:00 PM
https://markets.businessinsider.com/currencies/news/chamath-palihapitiya-investor-predicts-tesla-stock-triple-bitcoin-price-5x-2021-1-1029944974