Recently, Tesla's founder and CEO Elon Musk and investment manager Wood had a high-profile discussion during a live stream of Spaces on the social platform X. They gave in-depth reflection on the current state of the financial market and made incisive views on the mechanism of passive investing.
From start to finish, Musk has highlighted the regulatory pressures faced by publicly traded companies and the expectations of shareholders for quarterly performance. He believes that this pressure will force companies to make adaptive compromises in their operations in order to live up to investors at the end of the quarter, putting long-term development considerations on the back burner. This phenomenon exposes the mismatch between the company's long-term vision and the time horizon of investors in the current market environment.
In addition, Musk criticized the passive investment mechanism. He believes that the high weight of passive investment leads to excessive market volatility and limits the development of innovation and risk-taking. He noted that passive investors tend to follow only a small number of active investors, which can lead to distortions and wild volatility in the market. He stressed the need for more active decision-makers to balance the impact of passive investors on the market.
These views have sparked widespread discussion and disagreement. Proponents agree with Musk's stance that regulatory pressures and passive investment mechanisms limit the company's innovation and long-term growth potential. However, critics argue that these mechanisms are an important part of the market, able to provide some stability and appreciability.
Either way, Musk and Wood's discussion provides valuable ideas for reforming financial markets. This debate is important for re-examining existing market mechanisms and for exploring more efficient and fair approaches. Only through in-depth discussions and full consultation can we find a better balance in the existing system and promote the healthy development of the market.
Musk and Wood's discussion has raised questions about regulatory pressures and passive investment mechanisms in financial markets. This debate has played a positive role in promoting the reform and innovation of the financial market, and has provided a useful reference for future market development.
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