TL;DR

A Cybertruck explosion didn’t tank Tesla’s stock because the market expects the unexpected. It’s like finding out your kid drew on the wall—bad news, but once it’s out, it’s factored in.

Story

Ever heard the saying, “Don’t put all your eggs in one basket?” Well, the stock market’s a bit like that basket, and Tesla’s stock is one shiny, exciting egg. Recently, a video of a Cybertruck, Tesla’s futuristic pickup, exploding went viral. A guy apparently blew himself up. Not exactly great PR. Some folks thought this would tank Tesla’s stock price. It didn’t. Why? Because Tesla’s price already reflects lots of opinions — good, bad, and explosive. Like that time your kid draws on the wall? Bad, right? But once it’s happened, you’ve dealt with it. It’s priced in. What about when they bring home a perfect report card? Good! But again, once you know, it’s priced in. Tesla’s stock price is kinda the same. People already factor in that Teslas sometimes catch fire (like some gas cars), and that Elon Musk, Tesla’s CEO, sometimes tweets… interesting things. So, one exploding truck? It’s like a drop of rain in a swimming pool: not much impact. One piece of financial advice: Don’t panic when news hits. Look past the headlines and understand what’s really going on.

Advice

Don’t panic over headlines. Understand the bigger picture before making financial decisions.

Source

https://www.reddit.com/r/wallstreetbets/comments/1hri1sl/well_thats_regarded/