/biz/ - Business & Finance

>>52952380
It's not like Elon is even denying it. He tweeted this back around $60 (1k pre-splits) before the whole trillion dollar pump and dump.
He's been selling into the decline the whole way down. He made some massive capital raises the past two years.
The cultists that still remain long TSLA at this point legitimately believe Elon is god reincarnated. Nothing will convince them other than complete loss of capital. The coming liquidations will be hilarious.

>>52952505
>won't the S&P just replace failing companies with up and coming ones anyway?
Yes. The problem with TSLA is that it was so big and GAAP unprofitable for so long that by the time S&P accepted it into the index, it was going to take up a big chunk of the index. Normally the ETF is adding/removing the smallest size positions which makes rebalancing costs cheap since they make up such a small percentage of the ETF. With tesla, they added it at around $250/share, which was like 700 bil valuation. Losses on tesla alone have created a 1% drag on the entire index, and as it falls back to $50/share or so over the next 12 months, that'll be another 1% performance drag.
There's a lot of other overvalued shit in the S&P500, but most of it provided a performance boost on the way up, so the decline merely negates it. TSLA is a rare example of a stock that gets in and actually creates real long term losses for the index.