TL;DR
Tesla’s Q1 2025 earnings were a disaster, yet the stock went up. This reveals the absurdity of market manipulation and the dangers of speculative trading.
Story
The Tesla Q1 2025 earnings call: a masterclass in market manipulation. Imagine a casino where the house always wins, even when it loses. That’s Tesla. Their earnings tanked—down 71%—revenue missed estimates, yet the stock rose 5%. How?
Missing Earnings, Rising Stock: A Case Study Here’s the play: Tesla’s stock price is less about actual performance and more about market sentiment. Hype, memes, and the cult of personality around Elon Musk create a volatile cocktail. Investors bet not on fundamentals‣ Fundamentals: A company’s underlying financial health, like earnings and revenue—things actually matter. but on the narrative.
Playing the Greater Fool It’s a game of Greater Fool theory.‣ Greater Fool Theory: The idea that you can profit even from an overpriced asset if you can sell it to a ‘greater fool’ later. People buy inflated stock hoping to offload it to someone even more delusional before the bubble bursts. Some made quick profits, bragging about their ‘0DTE’ wins.‣ 0DTE: Zero Days To Expiration options—extremely short-term, high-risk bets on stock price swings. But others, lured by ’negative IV,’ got burned.‣ Negative IV: Implied Volatility—a measure of expected price swings. Negative IV is rare and often a trap.
The House Always Wins This isn’t new. Remember the 2008 housing crash? Or Enron? Same story, different costume. Market manipulation, fueled by greed and speculation, creates artificial bubbles that eventually pop. John, a retail investor, lost his retirement savings betting on Tesla. He thought he was ‘playing the market,’ but the market played him. Don’t be John.
Lessons From the Casino This isn’t investing—it’s gambling. If a stock defies logic (missed earnings + rising price = ?), beware. Do your research, understand the fundamentals, and ignore the hype. Tesla’s stock performance is a symptom of a larger disease: market manipulation preying on naive investors.
Advice
If a stock’s price defies logic, it’s probably not logic you’re dealing with. Be wary of hype and remember: fundamentals matter.
Source
https://www.reddit.com/r/wallstreetbets/comments/1k5gwna/for_the_people_who_played_tesla_earnings/