DW8 Growth, page-14833

That true, the SP does not always reflect the true worth of a company. Sometimes, like Tesla in the early days, the SP is too low and has no true correlation in a companies worth. If the company can show its true worth to the market and investors the SP will soon follow and go up to a fair value, just like Tesla showed us.

"...share price, which broadly reflects a corporation’s overall financial health. As a rule, the higher a stock price is, the rosier a company’s prospects become.
A company's stock price reflects investor perception of its ability to earn and grow its profits in the future.If shareholders are happy, and the company is doing well, as reflected by its share price, the management would likely remain and receive increases in compensation."