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by zen21 1310 days ago
“That does leave open the question of Musk, and the way he seemed to meme Tesla into existence, while building a rocket ship on the side…”

Meme Tesla into existence? He bought in to an already existing electric car company and then managed it very well in ways that had already been demonstrated by Apple. The idea that he ‘memed’ it into existence seems like utter gibberish.
1 comments
haakonhr 1310 days ago
The writer isn't disputing that Tesla didn't exist before, but just pointing out the fact that issuing shares actually lead to increased valuations. The argument that it has to do with the fact that Tesla turned into something more than "just" a car company.
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zen21 1310 days ago
Sorry, that doesn’t explain anything.

Issuing shares often increases valuations, and Tesla is more than just a car company because they have invested in electric drivetrains, battery technology, and self-driving, as well as other product and manufacturing improvements.

“Memed it into existence” is still gibberish.

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haakonhr 1310 days ago
Do they though? It depends on your definition of often I guess and it has definitely been happening more in recent years. I'm unable to find data, but in my experience I can only remember seeing this in sexy companies like Tesla where there are a lot of retail investors. It makes little sense that issuing a lot of new stock leads to a significantly higher market cap (unless there was uncertainty whether a company would be able to raise money at all).

I don't think "memed into existence" is gibberish; just hyperbole.

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