alt Hacker News> In the long term
In case anyone is wondering how Tesla’s stock price remain wildly detached from its business reality, keep these four words in mind. If you can convince people that anything about you and your business has to be evaluated on a literally astronomical timescale, you can justify any valuation you desire, because your believers will give you infinite time to realize their investment returns. It has nothing to do with business. They are selling you a vision — which can also come in a pill form, labeled "salvia" and sold at gas stations.
I still see people say the cybertruck is built for mars environments, conveniently ignoring the vast technological and economical barriers stopping us from driving commercially produced vehicles on mars. This space data center thing is the same deal. It doesn't matter how long it will take to solve the technical issues with cooling, radiation, maintenance. It doesn't matter if it will make economical sense or not. It doesn't matter if spacex will be the one to actually do it. You just have to believe, and give them some time — a lot of time, so much time that a monkey can type out Hamlet and type it out again backwards.
See also the buffoonery coming out of Bay Area "effective altruist" and "longtermism" communities.
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All share price fundamentals are based on the long term. Short term trading is why some shares are very briefly high or low.
> believers
If it were only retail investors, your assumptions could make sense.
However plenty of the share ownership is institutional investors. Most of them care a bit more about fundamentals. (I'm ignoring passive investors just using indexes).
I love how in today’s quarter-based world a decade is now a “literally astronomical timescale”.
I fully agree on the reality distortions and valuation chaos surrounding Tesla. This does also follow from the company being very volatile and chaotic, which becomes harder to price. How do you accurately price in e.g. Optimus - it seems really hard to tell at this point - which I guess is also one of the motivators for these strategies.
However, in this particular trajectory, SpaceX did build the rockets and did build Starlink which is now the best global-scale wireless communication network for many use-cases. Stretching this trajectory to scale up the technology to facilitate in-space computing is vastly more grounded than Shakespearean monkeys.