Because car companies are boring, and in an era of cheap money the meme wins. “Sexy” automakers also got insane multiples, look at where Lucid and Rivian were trading. But the capital is diverted to whatever asset people think will keep going up, not the one that will create value in the form of profits. This is also why GameStop, AMC, DogeCoin, Shiba Inu, NFTs, Pokémon cards, etc. were trading so high, the meme is the only thing that matters.

Elon Musk knows this and is a master at harnessing this power, which is why he’s shamelessly pumped DogeCoin and Shiba. He continually pushes his company to be the most popular brands by promising impossible futuristic products that cannot exist, but build excitement. Countless examples of these, but a few are Full Self Driving, a flying Roadster, the Tesla semi, solving transportation issues with tunnels, the Tesla bot, $25k model 3, solar roof that costs less than a normal roof, robotaxi, etc etc etc. It’s all calculated.