r/wallstreetbets
Why Musk's wealth is just a fairy tale
Musk's wealth is an illusion built on hype; massive Tesla share sales would crash the stock since it relies entirely on his persona.
- Musk's wealth is largely illiquid; selling significant shares would crash the valuation.
- Tesla's valuation is primarily built around the Elon hype rather than fundamental business growth.
- Any major selling by Musk would signal a loss of faith, destroying follower and investor confidence.
It happened, with the IPO of Spacex and his shares in Tesla, Elon Musk is the first trillionaire.
But sadly for him, the vast majority of his wealth doesn't really exist, at least not in the metaphysical sense of wealth that he can actually exchange for goods or money.
This is because Elon's wealth exist in the paradox state of only being worth as much as it is, because he doesn't sell/ exchange it.
If he should ever try to sell more than a small part of it, the believe of his followers and their greed for his companies's shares will vanish like a fart. Elon Musk selling more than a bit of his shares would signal him losing faith into the company's growth, and for his followers and potential investors, what worth has a company which's worth is mostly build around the Elon hype horse pulling it without said horse?
In this sense, Elon Musk is like a magic creature from a fairy tale. He is the leprechaun with the biggest pot of gold of all, but sadly, most of it will turn to lead and copper as soon as it leaves his rainbow, and everyone knows this...