Tesla's Furious Rally Pushes Market Value Past $100 Billion
Stocks soar despite coronavirus and a recession. There's been even more bullishness this month after CEO Elon Musk indicated that the company's electric semi-trucks would also start to see production ramp up, although it's not clear when that might happen. Tesla shares fell back sharply yesterday, but only after the most astonishing rise.
Stock in Tesla, the electric car company, has been on a rocket ride lately too. That's when they repay their shares, making oodles if the stock falls, as expected. It occurs when investors borrows shares, sell them into the market, and then plan on buying them back later at a later day for less money.
There will be no stopping Tesla share price rise in conjunction with the proliferation of electrical energy at the expense of fossil fuels in order to reduce CO2 emissions, when this mission is complete the rally will end, I dont see that as foreseeable and I dont know how much "plus" is on top of the $6,000 but my guess is its a lot.
In both cases, prices are supported by the infusion of trillions of dollars of new money into the economy and by the steady growth of passive investing, in which money automatically flows in from 401(k) contributions and is put to work buying stocks, pushing prices higher.
Musk's electric car company has rallied 115% in the last seven weeks, obliterating all previous price ceilings in the process. Apple was down 8%, Tesla down 9% and Amazon down 4.6%. Overall, the Nasdaq Composite (an index tracking the exchange that most big tech shares are listed on) was down 4.96% last night.
A loosely formed Shorty Ground Force began posting pictures of Teslas stored for weeks on lots across the country. Thus, we now have a 21st century wealth gap that is wider and more toxic than any time since the stock market crash of 1929 and the Great Depression which followed in its wake.
Then there's the success of Chief Executive Elon Musk in crafting a beautiful-future narrative to explain why Tesla should be even more expensive than it is. Musk's enormous compensation package is almost entirely tied to share price; on Tuesday, he qualified for an additional $2.1 billion worth of options after Tesla's average market capitalization over a six-month period exceeded $150 Tesla Analysis billion.