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QC (in Berlin 7/29-???)
@QiaochuYuan
something confuses me about this a lot at a gut level. tesla stock presumably has value on some level because people think tesla makes good cars. is the point that tesla’s cars are improving rapidly over time? (ignoring the meme effects of the elon markets hypothesis)
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John Pompliano
@JohnPompliano
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If you bought a Tesla Model S in 2012, your $77,000 car would be worth approximately $40,000 today. If you had invested that same $77,000 in Tesla stock, you would have over $7 million today. Invest your money instead of buying material things.
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QC (in Berlin 7/29-???)
@QiaochuYuan
part of what confuses me is that this advice can’t be universalized - if everyone decides to buy tesla stock instead of tesla cars then where is tesla’s revenue as a car company supposed to come from?
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QC (in Berlin 7/29-???)
@QiaochuYuan
Replying to
@QiaochuYuan
honestly this mostly strikes me as an argument that tesla stock is grossly overvalued. but i am still confused about what wealth is being transferred from who to who here. or like... there’s something sketchy about assuming you “have” a certain amount of money bc of stock prices
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QC (in Berlin 7/29-???)
@QiaochuYuan
the current price of tesla stock reflects where the supply and demand curves for tesla stock intersect. importantly it implies nothing a priori about the *slopes* of those curves - at some point if you have too much tesla stock and try to sell it you will drive down the price
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QC (in Berlin 7/29-???)
@QiaochuYuan
that $7 million dollars of tesla stock money is contingent on living in a big world where enough other players are selling tesla stock that you won’t drive down the price too much. in which case... why are so many people willing to sell you tesla stock at that price???
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QC (in Berlin 7/29-???)
@QiaochuYuan
is the bull case here that tesla stock shenanigans amount to a wealth transfer from people who aren’t willing to believe in tesla / elon to people who are? what the actual fuck is going on here?
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