Tesla’s Elon Musk Has a Finance Lesson For Investors. They Disagree.

There is little time off for investors following


Tesla


these days. The weekend before Christmas is no exception. In the past couple of days, there have been more tweets about


Tesla


‘s management. Investors have also learned where


Tesla


might put its next manufacturing plant. And Elon Musk has a finance lesson for investors.

“Securities Analysis 101,” tweeted out the Tesla (ticker: TSLA) CEO on Saturday. “As the ‘risk-free’ real rate of return from Treasury Bills approaches the much riskier rate of return from stocks, the value of stocks drop. For example, if T-bills and stocks both had a 10% rate of return, everyone would just buy the former.”