I mentioned early on in this blog, about being "upside-down" or "underwater" on a loan. You bought a house in 2007 and paid $500,000 for it. In 2008, it is worth only $400,000 and you still owe $450,000 on the loan. Big trouble.
But of course, a house loan is over 30 years, and maybe in five years, prices will recover - if you can hold out that long. With a car or boat or RV, however, the loan balance is often chasing the depreciation, and the depreciation usually wins. This is why 10-year RV or boat loans (or 7-year car loans) are
often always a bad idea. You are stuck with the vehicle and cannot sell it, unless you bring thousands of dollars in cash (which you don't have) to the closing table. Either that, or default on the loan, destroy your credit rating, and owe even more money to the bank.
This is why you see old Boats and Motorhomes rotting in people's side yards. They lost interest years ago, but still owe money to the bank. Sort of like Mullet-Man and his barn full of broken toys - that he still owes money on.
Tesla stock is up 100% this year, which makes little sense as the P/E ratio is an astounding 63. While that might seem "normal" in silicon valley, it is considered absurd in Detroit. Ford, for example, has a P/E ratio of 13.8 - which is astounding, if you think about it. But stock prices are often based on emotions, not logic, and an army of bots and simpers are hyping Tesla stock, much as Gamestop and AMC stocks have been hyped (both companies losing money and have no plans to make money). Just because some nerds on Reddit overpaid for one share of stock doesn't mean it is "going places."
The dumpster is a place.
So why did Tesla drop prices? Well, last year, Elon Musk demanded that price subsidies for electric cars be abolished - now that his company was no longer eligible for them. Neat idea - eliminate the subsidies that propped up your company, just as the competition gets into the business. Can anyone really be that baldly self-serving? You bet. Instead of abolishing these subsidies, the Biden administration expanded them, and as a result, they now once again apply to Tesla vehicles, provided the prices drop.