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One stunning example of the stock market bubble we are experiencing is Tesla or $TSLA stock.
It went from being the least valuable to most valuable automaker in the world over the last year, but heavily relies on government subsidies for its revenue.
https://seekingalpha.com/article/4360897-tesla-bubble-might-finally-pop
It went from being the least valuable to most valuable automaker in the world over the last year, but heavily relies on government subsidies for its revenue.
https://seekingalpha.com/article/4360897-tesla-bubble-might-finally-pop
Somehow Tesla is worth more than Toyota, even though Toyota and others are arguably more advanced in their move toward hydrogen fuel cells, have better quality vehicles, and actually produce an enormous amount of automobiles vs. Tesla. https://seekingalpha.com/article/4360892-teslas-stock-price-discounts-temporal-wormhole-future
Tesla's magical 500%+ stock rally was largely driven by short covering, as it was at one point the most betted against stocks.
When shorts cover, that induces a buying frenzy and sends prices higher.
But the price now is disconnected from reality. https://seekingalpha.com/article/4360587-time-to-short-tesla-bubble-burst-next
When shorts cover, that induces a buying frenzy and sends prices higher.
But the price now is disconnected from reality. https://seekingalpha.com/article/4360587-time-to-short-tesla-bubble-burst-next
If you remember the 1999 dot com stock market bubble bursting, what we're seeing with $TSLA is very, very reminiscent of that.
The stock is trading at a price-to-earnings ratio of 785, which is about 20x higher than most growth stocks trade! https://seekingalpha.com/article/4360003-tesla-excuse-me-1999-is-calling
The stock is trading at a price-to-earnings ratio of 785, which is about 20x higher than most growth stocks trade! https://seekingalpha.com/article/4360003-tesla-excuse-me-1999-is-calling
Rumors are going around today that Tesla will be replacing Uber and Lyft as the potential leader in "autonomous rides."
But Tesla's autopilot feature isn't even a full self-driving mode and it's many, many years away from getting there--if it ever does. https://seekingalpha.com/news/3595158-tesla-hailed-autonomous-rides-leader-in-threat-to-uber-and-lyft
But Tesla's autopilot feature isn't even a full self-driving mode and it's many, many years away from getting there--if it ever does. https://seekingalpha.com/news/3595158-tesla-hailed-autonomous-rides-leader-in-threat-to-uber-and-lyft
The most likely scenario, in my humble opinion, is that Tesla is a speculative bubble based largely on euphoria expectations of the company's future.
Retail investors have piled in to this stock at extraordinary levels, which is usually a bad sign. https://seekingalpha.com/news/3594371-huge-tesla-bear-says-automaker-will-hemorrhage-cash-this-year
Retail investors have piled in to this stock at extraordinary levels, which is usually a bad sign. https://seekingalpha.com/news/3594371-huge-tesla-bear-says-automaker-will-hemorrhage-cash-this-year
Tesla is also not an eco-friendly company!
Their EVs are not good for this planet.
Lithium, which powers the battery storage on Tesla's, is horribly destructive to extract.
And most Tesla's recharge from coal/natural gas grids.
Thus they aren't green. https://digital.hbs.edu/platform-rctom/submission/tesla-and-the-environmental-impact-of-lithium-ion-batteries/
Their EVs are not good for this planet.
Lithium, which powers the battery storage on Tesla's, is horribly destructive to extract.
And most Tesla's recharge from coal/natural gas grids.
Thus they aren't green. https://digital.hbs.edu/platform-rctom/submission/tesla-and-the-environmental-impact-of-lithium-ion-batteries/
In fact, lithium mining is one of the most destructive forms of mineral extraction known to Earth.
And the fact that the batteries are being charged from a hydrocarbon-based grid 95% of the time means that we're creating *MORE* environmental destruction. https://www.wired.co.uk/article/lithium-batteries-environment-impact
And the fact that the batteries are being charged from a hydrocarbon-based grid 95% of the time means that we're creating *MORE* environmental destruction. https://www.wired.co.uk/article/lithium-batteries-environment-impact
There's also cobalt, a crucial ingredient in lithium batteries.
The institutionalized racism and environmental destruction involved with the extraction of cobalt is horrifyingly cruel and dangerous.
It's also an extremely toxic and unstable substance. https://medium.com/thebeammagazine/cobalt-the-toxic-hazard-in-lithium-batteries-that-puts-profit-before-people-and-the-planet-ae5a63e0f57c
The institutionalized racism and environmental destruction involved with the extraction of cobalt is horrifyingly cruel and dangerous.
It's also an extremely toxic and unstable substance. https://medium.com/thebeammagazine/cobalt-the-toxic-hazard-in-lithium-batteries-that-puts-profit-before-people-and-the-planet-ae5a63e0f57c
Suffice it to say, until we have hydrogen fuel cells powered by renewable energy, there isn't a substantive improvement in electronic vehicles vs internal combustion engine vehicles.
Tesla is but a flashy, trendy but largely unproven company.
It has yet to be clean or green.
Tesla is but a flashy, trendy but largely unproven company.
It has yet to be clean or green.
