We are witnessing the largest market bubble ever. Larger than 1929, 2000 dot com and 2008 financial crisis. Right now, Tesla and Zoom are the largest short opportunities. Even though short sellers lost 40 billion betting against Tesla, there are hundreds of billions to be made on shorting Tesla right now.
On May 1st 2020, when Tesla's market cap was $133 billion Elon Musk posted on Twitter "Tesla stock price is too high imo"
Today, market cap is $820 billion, more than 6 times higher, making him the richest person in the world, just on the paper of course. What does he think now?
PE ratio is 1700. Since fundamentals no longer apply, why is PE ratio not 3400? Market cap is 40 times revenue. Where is this leading to? Just when I thought I saw it all, this happens. Tesla is the largest asset bubble we have ever witnessed.
Bitcoin's market cap has surpassed Warren Buffett's Berkshire Hathaway. Tesla is at 670 billion market cap. Tesla's PE ration is now 1,400. There is zero fundamental analysis in these valuations. When fundamentals no longer apply one has to question the purpose and/or the future of capitalism. Because if this is capitalism, it has every symptom of terminal illness.
