Elon fans fire as value soars
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