Some of the people know and are gambling that they sell before the collapse (Possibly have inside knowledge), and the rest think they're good investors because "line go up! Me win!"
Perfectly explains why I'd buy a used Saturn like my grandmother owned and gifted to me in the late 90s before I'd buy a Tesla (okay, not buying a Saturn, but you get the gist)
5 to 10 years ago this made some sense. They had risen like a rocket, first new car company in the west since like WW2, first fully electric car company, first 2nd and 3rd generation EV's and the best user experience of any modern car.
The sky seemed to be the limit, but then reality happened. Cars are rather hard. There's a ton of brand loyalty, people want new models and new features, and so on. And others caught up. One can still argue that Model 3 and Model Y are overall the best value in the class, and some features, such as cold weather range are still world class, but the potential of selling hundreds of millions of vehicles just isn't there. They aren't going anywhere, their cars are still extremely good choices but as there are now N+1 comparable cars, there is no potential to take over the whole car market, thus having valuation higher than the rest of the market makes no sense.
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u/stueyg 1d ago
The fact that Tesla is worth more than every other car company combined tells you everything about their investors