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One way to explain this is that “goodwill” is an intangible that shows up on the balance sheet, which must always be balanced. Assets = Liabilities + equity.

Goodwill is on the asset side of the equation.

Basically, Tesla stock owners consider the company to have ambiguous secret sauce of the right employees, IP, brand recognition/reputation that makes it more valuable than its current on-paper business activity.

Or, it’s just a stock that they believe they can find buyers for – a belief which has been proven to so far be true.



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