Earlier quoted context omitted.
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The stock market is not definitionally "reality" in the sense being used. It's perfectly fine to look at the stock market and consider it "detached from reality", in the sense being said.
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Elon Musk Becomes First Trillionaire as SpaceX Starts Trading
41–50 of 90 posts
Re: Elon Musk Becomes First Trillionaire as SpaceX Starts Trading
#42The stock, and subsequently the stock market, is so detached from reality. For the life of me, I can’t understand why investors will literally put a 100x premium on Musk, and the things he touches. I feel like I’m living in some alternative universe.
Have you watched a Starship launch? The more I understand the incredible feats of engineering they are performing the more bullish I become.
Space X is first and foremost being valued on their AI data centers.
Re: Elon Musk Becomes First Trillionaire as SpaceX Starts Trading
#43SpaceX will be listed on QQQ in the next fifteen days. There are only around 4.2% shares publicly available for trading, (about $75 billion out of a $1.75T market cap). This means passive funds that include QQQ will be forced to buy and compete over a very small sliver of the total shares (estimated at around $25 billion)
The exchange regulations have just been inexplicably loosened a month ago to allow this circus to happen. Beforehand, a company would have to show profitability and stability and wouldn't be allowed to be listed on an index for at least a year after its IPO.
So there is no wonder why the price is as it is. Perfect scam for wallstreet and the little guy get screwed so even better.
Re: Elon Musk Becomes First Trillionaire as SpaceX Starts Trading
#44Earlier quoted context omitted.
Do people do that? Can I e.g. borrow against my assets and not pay any taxes? Curious to learn more.
When you get a loan you don't pay taxes. You pay taxes on the income used to pay it back, or the gains when you sell an asset to pay it back.
Yeah I’m confused about this part. Is there some loophole where they never have to pay the loan back? Otherwise they’d be taxed at that point.
Re: Elon Musk Becomes First Trillionaire as SpaceX Starts Trading
#45Congratulations to the US. I'm sure it must be nice to have a trillionaire I wish my country had a trillionaire. That would give my day to day life meaning
It's not like his checking account has $1T in it, this is just a technicality that sums up all of the hypothetical value of the shares he owns in companies. If he actually tried to sell it and turn it into cash it would be less than $1T.
If it's so worthless, let me have it instead of him.
Re: Elon Musk Becomes First Trillionaire as SpaceX Starts Trading
#46Earlier quoted context omitted.
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I live in a country (Norway) which has been a early-adopter market for EVs. In 2014 Tesla cars were endemic, you could see them everywhere. I was a big believer in Tesla cars. But things obviously changed. We're still a lead market as far as Tesla sales go, but right now it is just another car. There's absolutely no rationale to automatically go for Tesla. Which is why I find it incredibly difficult to see how Tesla…
> In 2014 Tesla cars were endemic, you could see them everywhere
Tesla sells like 8x the number of cars in Norway today than they did in 2014.
Re: Elon Musk Becomes First Trillionaire as SpaceX Starts Trading
#47Earlier quoted context omitted.
When you get a loan you don't pay taxes. You pay taxes on the income used to pay it back, or the gains when you sell an asset to pay it back.
Yeah I’m confused about this part. Is there some loophole where they never have to pay the loan back? Otherwise they’d be taxed at that point.
Taxed on repaying a loan?
Re: Elon Musk Becomes First Trillionaire as SpaceX Starts Trading
#48Earlier quoted context omitted.
It's not like his checking account has $1T in it, this is just a technicality that sums up all of the hypothetical value of the shares he owns in companies. If he actually tried to sell it and turn it into cash it would be less than $1T.
If it's so worthless, let me have it instead of him.
It's more like "he was already rich before, but now more of his wealth is countable".
Re: Elon Musk Becomes First Trillionaire as SpaceX Starts Trading
#49The stock, and subsequently the stock market, is so detached from reality. For the life of me, I can’t understand why investors will literally put a 100x premium on Musk, and the things he touches. I feel like I’m living in some alternative universe.
SpaceX had this similar mystique to where owning a private share was something rich people bragged about like having a rare Lamborghini.
A lot of these modern bubble stocks are underpinned by a bunch of intangible collectibility reasons that realistically only exist because of a huge cash glut in the US stock market.
Maybe it goes on for a long time, but realistically as baby boomers start drawing down on their retirement portfolios and/or dying there's reason to believe money will start leaving the markets in the next 20ish years.
Re: Elon Musk Becomes First Trillionaire as SpaceX Starts Trading
#50Earlier quoted context omitted.
Do people do that? Can I e.g. borrow against my assets and not pay any taxes? Curious to learn more.
This strategy is not a traditional loan with interest and regular payments. If you try to live on regular loans it doesn't make any sense. It's a scheme mostly only available to HNW people where they repay upon death in certain tax loophole ways.
These loans still have interest and regular payments. They are not like your mortgage or credit cards, but interest and minimums still apply.