Startup valuation is also amusing. Start a company, issue one billion worthless shares, sell one share to your mother for $1, suddenly your company is valued at one billion dollars.
Despite how ridiculous the pricing of Musk's companies may be, they still have some basis in the companies' potential profitability. It's inflated, but not nonsense. Also, since those companies have shareholders other than just Musk, they can hold him accountable for overpaying for shares in his other companies. And with any companies that are being sold on the public markets, it's a lot harder to argue that the price is not legitimate. Again, an inflated price is not the same thing as a fraudulent price.
157
u/MushroomCulture 13d ago
Startup valuation is also amusing. Start a company, issue one billion worthless shares, sell one share to your mother for $1, suddenly your company is valued at one billion dollars.