The trading Thursday was red, mostly because I tried to catch the falling knife of Tesla (TSLA) after earnings in the morning. Friday was red but only because I didn't want my Shopify (SHOP) options to get exercised since SHOP has had a strong couple weeks.

The Tesla earnings call and the ensuing recovery on Thursday was more magical thinking. The stock behaves much more like a forecast trade than an actual equity of an actual company with some reality in its books. Somehow this company booked 28B revenue and so the board wants to offer their CEO a 1T pay package, or a thousand billion? Somehow this company, a car company, is trading at a P/E ratio of 200. Shopify: 100. The AI trade cohort?:

• Amazon: 40
• Microsoft: 37
• Meta: 30
• Google: 29

Arguably four of the most inflated current AI valuations don't have a price-to-earnings ratio even in the same ballpark as Tesla. It's incredible to watch.

Obviously I am rooting against Tesla, not just because I think Elon Musk is a fascist but because it's just a lousy business. Like all his other businesses, it's grown up with an addiction to government subsidies and that has a very limited shelf life. I am also looking forward to Cathie Wood being on the losing end of this trade.

“Index funds do no fundamental research, yet dominate institutional voting. Index-based investing is a form of socialism. Our investment system is broken,” she added.

Good grief, give me a break.

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