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1 day agoThe issue is the price to earnings ratio of the Tesla stock which is almost 200:1.
The level of profit is not bad for a normally price company but Telsa needs to have profits grow exponentially to justify their stock price.
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It is also because the USA is the reserve currency of the world with open capital markets.
Savers of the world (including countries like Germany and China who have excess savings due to constrained consumer demand) dump their savings into US assets such as stocks.
This leads to asset bubbles and an uncompetitively high US dollar.
It’s terrible for the stock price which has a price to earnings ratio of almost 200.
If this were a normal company with a profit margin of ~6% and a normal stock price (in line with the market average), it would be fine.