Welcome to the new age of capitalism, where companies don’t have to make money to uh… make money. Case in point: the cult of Elon Musk is out in full force on social media after
Tesla stock shattered the $ 318 billion mark on Wednesday. And boy are they smug:
In the land of fairies and unicorns, Musk will be a trillionaire | Source: Twitter
According to this fool, Musk is on course to becoming the world’s first trillionaire. No small feat since, last I checked,
Forbes lists him at th in the world rankings .
Flaunting a “measly” net worth of $ billion, Musk is going to have to double down on his efforts if he’s ever going to achieve that lofty goal.
Let’s Back Up and Take a Look at the Numbers
Tesla’s (NASDAQ: TSLA) surgeon to a $ billion market cap is absolutely ludicrous. The electric vehicle pioneer is now more valuable than all three German automakers. It also sold times fewer cars in 229335 compared to VW:
Can anyone say bubble? | Source: Twitter
The data speaks volumes and yet that’s still not enough to convince (Twitter devotee’s from worshiping at the altar of the Musk:
It represents that Tesla has the best technology and EV’s, and best software and full self driving in EVs, and Tesla is going to sell millions of cars, and put legacy auto makers out of business.
That’s a lovely utopia and I’m sure many of us would love to live in it, but it just doesn’t make any logical financial sense. Tesla’s sky-high stock is already massively overvalued and in (long years it still isn’t making any money:
Tesla has no hope of making money | Source: Twitter Elon Musk: Path to the World’s First Trillionaire
I’m not sure there is a path but for the sake of argument let’s follow the hypothetical Tesla CEO performance line.
According to the trillionaire tweet, Musk will first have to grow Tesla’s market cap roughly 6 times from current levels.
He’ll then own % of the company and supposedly knock Bezos off the throne with a personal fortune of $ (billion.)
Perhaps Musk should focus on a more equitable Earth first? | Source: Twitter
Billionaire rivalries aside , what astronomical price would Tesla’s stock have to reach to achieve that goal? Thirty-two Wall Street analysts, surveyed by FactSet, believe that
TSLA is worth only $ . a share
Assuming he achieved this miraculous feat, he would then still be five times short of the mythical trillionaire figure. How to make up the difference? Hmmm.
Ponzi Economics is the Only Way
The only way this insanity will manifest is through the continued
Ponzi financing of the fed . Anyone who believes this stock market, and by extension Tesla, will go up ad infinitum is deluding themselves.
People love flinging large terms like ‘billionaire’ or ‘trillionaire’ around but, in truth, they have little meaning. If some mook at the fed can push a button and add a couple of billion dollars to the money supply, what’s the point?
Don’t get me wrong, Musk’s goal of overhauling the auto industry is a noble one. But these same worshipers should get a little perspective, Musk ain’t no profit-yielding savior.
This article was edited by Samburaj Das .
(Read More )