It’s as if the SEC never sued Tesla
Look at the stock chart of the last five days. The sinkhole there is the SEC lawsuit against Elon Musk that lasted two days. Tesla stock tanked 17%. Then, after Elon Musk and Tesla agreed to a settlement, Tesla stock rebounded 17%. Long-term Tesla investors might not have even noticed. The story seems to have died as quickly as it was born. So what can be learned from this latest Musk drama?
The lesson is the market almost always overreacts to Tesla and Elon Musk news. And, because Tesla news is the best-selling news in the business world, expect many more overreactions in the coming years.