Comment He hacked capitalism (Score 3, Insightful) 272
The whole point of stock markets and such is that you have hard core rational investors ensuring valuations are accurate.
But Musk figured out that you don't need solid fundamentals, all you need is a hyper-loyal core following of retail investors who support you regardless of fundamentals. So you just bullshit just enough to keep them happy, without crossing too far into fraud, and the retail investors stay on board.
The retail investors create a floor for the price and their crowing about their winnings creates a bubble. The institutional investors then see what's happening and hop along for the ride.
The result is the two most overvalued companies in history (Tesla and SpaceX). In theory, the whole pile eventually comes crashing down, but just like any bubble the fund managers who buy are unlikely to be the fund managers left holding the bag.