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Debunking terrible arguments in favor of Tesla stock
Let me be clear, one can be bullish on Tesla stock but disagree with certain arguments for that conclusion/claim.
So, without further ado, let’s look at the arguments and my replies.
1. “Tesla is more than a car company: it’s a battery company!”
Okay, even if that’s true, how does that change anything? The same points made about Tesla cars can be applied to this. For example, it’s not like Tesla has a monopoly on solar panels.
2. “One of the reasons Tesla stock is on a tear is because it’s now obvious that oil isn’t the future.”
Okay, but that’s a non-sequitur. And once again, it’s not like Tesla has a monopoly on alternative energy.
3. “Tesla stock can’t be in a bubble because there’s still intrinsic value in the company with cars and batteries”
This is just a misunderstanding of what bubbles are. Bubbles don’t mean there isn’t any value in the underlying asset.
4. “People have been saying that Tesla stock is in a bubble for a long time”
That doesn’t mean that the bubble can’t get bigger.
Let me close by making clear that these aren’t the only bad arguments people have put forward in favor of Tesla stock. For me to reply to all those arguments, it would take more than one blog post to respond. I think people need to be clear on what their motivations are when giving arguments, and people need to make sure they aren’t engaging in confirmation bias.
