- Tesla stock is on a different rift.
- Elon Musk’s Moloch is now worth more than most of the world’s major car brands combined.
- An efficient market hypothesis is out the window for TSLA bulls after the S&P 500 rally.
In one of the most notable accomplishments in US stock market history, Elon Musk’s Tesla is in close proximity to a $ 1/2 trillion valuation. With that staggering number, TSLA is rated higher than most of the world’s largest auto brands combined.
Tesla shares soar as the S&P 500 rally continues
Trading over $ 515, TSLA has stood up to the odds of a global pandemic, mass competition, and an army of belligerent short sellers. The most recent achievement is the admission to the S&P 500, which has resulted in further dramatic increases in the last few days.
Currently trades at a valuation of $ 492 billionTesla cops are in a euphoric mood. If we dig into the numbers, those who believe Elon Musk’s EV juggernaut is a car company should now look the other way.
TSLA now rated higher than most automakers in the world – combined
Take a deep breath; TSLA is worth more than General Motors, Ford, Fiat Chrysler, Honda, Hyundai, Daimler AG (Mercedes), Ferrari, BMW and Volkswagen. No big deal? Well, Tesla is not only valued more highly than these globally recognized names, it’s also more expensive than any other. Combined.
When you factor in Tesla’s sales, It’s impossible to call them “just a car company” and not expect their stock to crash. Instead, the cops are focusing on their spin-off businesses in battery technology, solar power, and self-driving technology.
Elon Musk’s caution has been rejected in favor of an inefficient market
Despite all of these arguments, the value still seems like a stretch. Especially when you are the CEO. Almost amusing since then Elon Musk called TSLA overratedTwo events that should not have created value in an efficient market produced enormous returns.
The first was the stock split, the in no way creates added valueand triggered a push to record highs. The second was the upcoming S&P 500 listingThis just adjusts how Tesla is traded and has nothing to do with its business.
If a cult following is the number one reason for TSLA, investors need to consider how a brand built on being an underdog can maintain its position as a front runner. Apple somehow managed to thread the needle of “otherness,” despite being as mainstream as it gets.
Ultimately, the question arises whether Tesla stock can stay afloat “Trade recipes,” as the Toyota CEO put it (This was a way of voicing ideas or dreams.) A huge contingent of fans and investors around the world clearly believe this is possible. Over 9 million shorts differin the expectation that at some point the markets will demand a meal, not just a Chef Musk menu.