Tesla has unveiled cheaper models of two of its most popular cars in the US as it tries to boost sales on the heels of the expiration of a key US tax credit.
But the carmaker’s shares tumbled about 4% as investors were underwhelmed by the announcement. In the US, the new versions of its Model Y mid-sized sport utility vehicle and Model 3 sedan are priced only $5,000 less than previous versions.
Tesla, which faces growing competition, has lost ground as it has been slow to offer new, more affordable vehicles, despite its release of a new Model Y version this year.
Tesla is propped by retail investors. People who do not understand how to value a stock. More than twice as many retail investors as other stocks.
Using a very rough definition of ponzi scheme, any company trading this high above book value is one.
There is nothing in the fundamentals that moves the price. It’s all retail investor sentiment.
Emotional traders are exploitable traders. The insitutional investors are taking advantage of the situation and will be the first to get out because they control the game.