My first weekly post at Creit Writedowns Pro includes some thoughts on Tesla, Trump's Fed choices, the US trade war with China, M&A and corporate earnings.
Tesla is a completely speculative, junk-rated venture. Investors in the company are betting on Elon Musk's celebrity as a forward-thinker, hoping he can ramp up production and achieve significant economies of scale
We're in the midst of another technology bubble. And Tesla has benefitted greatly. When this bubble pops, where will Tesla be?
I am using Tesla as an example here more than anything. I am not about to delve into Tesla's loss-making operations and make a case against the stock specifically. But I do want to highlight the 'bubble' that Tesla represents.