Ten Insane Things

I came across this post on the ten insane things that Wall Street believes in:

1. Falling gas and home heating prices are a bad thing
2. Layoffs are great news, the more the better
3. Billionaires from Greenwich, CT can understand the customers of JC Penney, Olive Garden, K-Mart and Sears
4. A company is plagued by the fact that it holds over $100 billion in cash
5. Some companies have to earn a specific profit ”“ to the penny ”“ every quarter but others shouldn”™t dare even think about profits
6. Wars, weather, fashion trends and elections can be reliably predicted
7. It”™s reasonable for the value of a business to fluctuate by 5 to 10 percent within every eight hour period
8. It”™s possible to guess the amount of people who will get or lose a job each month in a nation of 300 million
9. The person who leads a company is worth 400 times more than the average person who works there
10. A company selling 10 million cars a year is worth $50 billion, but another company selling 40,000 cars a year is worth $30 billion because its growing faster

The last point is obviously about Tesla. Tesla’s market capitalization is almost $32 billion today. Put another way, Tesla’s market cap is over $600,000 for every car it made last year. General Motors $48 billion market value is equivalent to about $4,800 for every vehicle it sold last year.