Judging from some of what I’ve seen written by people who think that Tesla is good investment, there is a misunderstanding of what constitutes a stock bubble. It seems that many Tesla believers think that if the stock price is going up, that this must not be a bubble. When in reality, this is just a bubble doing what a bubble does.
I’ve always agreed with Warren Buffet’s motto on what makes a company an attractive investment. Which is, look for companies that have good products and great management teams. But when you look at Tesla, you see the exact opposite. You see a company that is poorly managed and has terrible products. And you could go one further, they also have terrible service. It’s a perfect storm of a company.
The Consequences of Cars Spending Much More Time in the Garage Tesla’s has an army of writers and influencers who, for various reasons, do their best to prop up this disappointing company in the face of perpetual bad news. Back in 2019 Tesla announced the closure of most of their retail stores in the face of imminent bankruptcy. This group of dishonest cheerleaders said that this was just another genius stroke by Musk. Musk later backtracked on the full store closure plan after getting an emergency loan. But did you hear a peep from the cheerleaders on how Musk made a mistake or Tesla looked close to collapsing? If that doesn’t show the hypocrisy of the media I don’t know what will.
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