[jkachmar]

> It is curious that since 2013 Tesla sales have jumped from approx 20,000 per year to approx 30,000 per month and yet the stock price hasn't shown an equivalent increase.

For the Nth time that this conversation has to be had on the internet: That’s Not How The Market Works.

Tesla’s stock has been _very_ optimistically valued for quite some time because the market collectively determined that the company was likely to do very well. If a company does well and that performance isn’t surprising then there wasn’t an inefficiency and the market doesn’t need to correct for it.

Likewise, if a collection of market participants believes that Tesla’s valuation is overly optimistic then the can short the company. In doing so, they will be incentivized to show evidence that the valuation isn’t realistic and hopefully validate their short position.

There is an argument to be had over which incentives may or may not be good for society here, but that is completely orthogonal to the discussion of market valuation and short/long positions.