Elon fans fire as value soars

Financial Mail - - DIAMONDS & DOGS - Mad Max

Tesla’s share price has been on the sort of tra­jec­tory that you might have ex­pected to see from one of Elon Musk’s Fal­con Heavy rock­ets, with the some­what stag­ger­ing re­sult that it is now the most valu­able car­maker in the world.

The com­pany has pow­ered past Toy­ota, and it is now worth more than three times the com­bined value of Gen­eral Mo­tors and Ford Mo­tor Co.

The lat­est surge came af­ter Tesla smashed an­a­lysts’ es­ti­mates for cars pro­duced and de­liv­ered in the sec­ond quar­ter, de­spite its main fac­tory in Cal­i­for­nia be­ing closed for much of the pe­riod, and it says that pro­duc­tion is now back to pre-pan­demic lev­els.

A good deal of the suc­cess is at­trib­uted to in­creased sales in China af­ter the open­ing of its fac­tory in Shang­hai en­abled it to ac­cess the mar­ket with­out the stiff im­port du­ties that had pre­vi­ously ham­pered its progress there.

Then there’s the prospect of in­cre­men­tal sales from the Cy­bertruck, which looks as though it’s wan­dered off the set of a movie, and the Road­ster, billed as the world’s fastest car with a punchy 0-100km/h time of 1.9 sec­onds and a top speed north of 400km/h.

The share has been shorted to bits by Wall Street’s finest, who can’t see any ra­tio­nale for its val­u­a­tion, while an am­a­teur army of re­tail in­vestors have been drink­ing the Kool-aid and fill­ing their boots.

Musk has been fan­ning the flames with a se­ries of in­creas­ingly in­flam­ma­tory tweets about shorts and his par­tic­u­lar en­emy, the US Se­cu­ri­ties & Ex­change Com­mis­sion, and it sounds like he’s lov­ing it.

If a com­pany as well run as Capitec is strug­gling, heaven knows what the rest are do­ing

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.