• @Blue_Morpho@lemmy.world
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    111 days ago

    Valuation is only useful for an exit strategy. They’ve already IPO’d. If they don’t show profit, the stock will collapse.

          • @Blue_Morpho@lemmy.world
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            111 days ago

            They got money from the IPO. The money let them build a plant to sell cars at a profit. In 2016, they had burned through the IPO money and weren’t selling the model 3 yet. Musk later admitted they were months from bankruptcy. The stock price was around $12 a share.

            Selling cars at a profit is what caused their stock price to rise.