This is actually not as bad as I thought. Seems like the stock price has actually had a relatively consistent relationship with earnings and been relatively predictive.
1980techguy on
Now do earning vs market cap.
Code_Monster on
This is why the “markets lead to the truth” nonsense is just that : nonsense. The correlation of price and earnings does not exist, Elon’s status as a Trump insider is gone, SpaceX and Tesla having nothing in common other than Elon being the acting CEO. And yet the price of TSLA keeps increasing,
ASuarezMascareno on
So thers a long term exponential, and on top of that an anti-correlation with earnings. They more they earn, the lower the stock price.
krom0025 on
This is misleading with the different y axes scales. If you are going to compare earnings and stock price do it as a percentage change from a baseline date and you will see how much faster the stock price has changed. Or, just simply plot the ratio of the two over time
RecentSubject3918 on
Net income per split-adjusted share would be a lot more informative.
e136 on
Looks like investors correctly predicted a large earnings increase in 2022 by buying stock in 2020.
9 Comments
OC built in D3.js based on data from [Macrotrends](https://www.macrotrends.net/stocks/charts/TSLA/tesla/net-income) and Yahoo Finance.
Shows how stupid the market can be
This is actually not as bad as I thought. Seems like the stock price has actually had a relatively consistent relationship with earnings and been relatively predictive.
Now do earning vs market cap.
This is why the “markets lead to the truth” nonsense is just that : nonsense. The correlation of price and earnings does not exist, Elon’s status as a Trump insider is gone, SpaceX and Tesla having nothing in common other than Elon being the acting CEO. And yet the price of TSLA keeps increasing,
So thers a long term exponential, and on top of that an anti-correlation with earnings. They more they earn, the lower the stock price.
This is misleading with the different y axes scales. If you are going to compare earnings and stock price do it as a percentage change from a baseline date and you will see how much faster the stock price has changed. Or, just simply plot the ratio of the two over time
Net income per split-adjusted share would be a lot more informative.
Looks like investors correctly predicted a large earnings increase in 2022 by buying stock in 2020.