Peter Gibbons |
08-28-2020 08:56 AM |
Quote:
Originally Posted by SupDock
(Post 15130616)
Opposite, I'm looking to buy if there's a big dip after the split. I think Tesla is overpriced
|
I've been thinking a lot about TSLA lately myself because IMO the stock is overpriced (I even worried about that when around 900). However, I have been asking myself why does the market keep buying then? Surely, others must see this too. Here is what I am beginning to think relative to TSLA.
Is it overpriced? Probably
Then why are others buying? Because it is not part of the S&P 500 currently. It it is added (and how can it not be added eventually), funds will be FORCED into buying shares of it to match its value ratio for index funds. This will drive the price even higher.
In short, I think others are predicting this gets added to S&P 500 and there is a lot of short term money to be made by buying.
I could be wrong (obviously), but nothing else makes sense to me.
|