I just saw a post that said Tesla stock is only worth 1/5 as much as it’s valued as. It doesn’t make sense to me.
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Stock is a share in ownership of a company.
Thus the “real” value of stock could be seen as the real value of a company. What are it’s assets/profit/future earnings potential etc.
Stock price (like most prices) however is determined by the demand for the stock and *not the companies value/performance.* While normally people buy stock based mainly on the companies value there are many reasons that people may chose to buy stock regardless.
Consider the meme stock purchasing driving multiple failing business stock value up to insane heights.
In Tesla’s case people buy into Tesla largely based on the dreams and fantasies that it presents (the advanced electric technological future) rather than the real earnings potential of the company. That love of Tesla/Musk has essentially created artificial demand far beyond the real value of the company.
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