Tesla stock (TSLA) is down a bit more than 30% since its mid-2017 high. The major reasons: 1) It’s not a viable business model and has shown no evidence that it has a path to profitability. 2) The more cars they sell, the more money they lose. If you read ER reports, they often base their valuations heavily off the idea that if they sell X amount of cars, the stock can be worth Y. I don’t understand this argument because they sell each car at a loss and there is little to no scale involved in the business. Tesla is not like a traditional retail company where they can buy in wholesale bulk and assuming they sell a certain amount of finished goods, they run above breakeven. 3) The only way the company lasts is by raising more cash from investors. Since it doesn’t have a viable business model in the first place, this makes it a pyramid scheme. The stock’s current valuation is based off the fact that X% believe it’s a zero and Y% believe it’ll figure things out and be worth whatever that might be in present value terms. The weighted average of that represents its stock price. _____ Is Tesla’s stock an eventual $0.00? Yes / Agree = this company is most likely to eventually go bankrupt No / Disagree = they’ll eventually find a way to make a profit and its stock will retain value