Tesla shares already over $ 2000. Elon Musk will be the richest in the world?

When Tesla stock broke the psychological barrier and cost over $ 1000, it was the most short-cut stock in the US. Meanwhile, the price just surpassed $ 2000. As a result, Tesla is now worth more than Ferrari, Ford, Suzuki, Subaru, Honda, General Motors, Hyundai, Fiat, Citroen, Chrysler, Renault and Nissan combined.

Tesla shares more expensive 454% from mid-March

Elon Musk

The price craze on Tesla shares has been going on since mid-March, when Elon Musk was paid $ 361 for each share in the coronavirus pandemic. Since then, they have increased by 454%. Why so much interest? Let's try to look at the facts.

Undoubtedly, Tesla has a product that is very popular - no one doubts that electric cars are the future of the automotive industry, and Tesla sets global trends in this regard. He also has great PR and an eccentric owner. Every word Elon Musk says is tracked and analyzed by millions of people. Nobody doubts that he is a successful man and a visionary. So far, there has been only one thing - profits. But even this did not bother investors much. But now it had turned out that they were right. Tesla showed a profit in the fourth quarter in a row, and this allows the company to enter the S & P500 index, i.e. to settle in the largest market in the world, and not just be its curiosity.

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The louder the better

Tesla is not only a product in the form of cars, but also - and according to some people above all - a marketing product. Elon Musk regularly warms up the atmosphere around the company's shares. In 2018, he announced that he would withdraw it from the stock exchange and buy shares for $ 420. They cost $ 370 then. Three weeks later, however, he changed his mind, and after the confusion he created by tweeting about it, the US Securities Commission accused him of cheating. He paid a $ 20 million fine for it, and it's fair to say that it was one of the most expensive tweets ever.

“I was deeply saddened and disappointed by the unjustified SEC decision. I have always acted with truth, transparency and investor thinking. Honesty is the most important value in my life, the facts will show that I have never compromised it in any way " - commented Elon Musk's punishment.

Today, he has to consult with the management of his company every tweet that he intends to post - this is also the result of a court ruling when he once wrote about 500 cars, predicting the sale and production of cars. copies, and then quickly edited the entry to 400. aut.

How much is Tesla worth

This year, Tesla's capitalization overtook all rivals in the industry. Moreover, soon the brand will be worth more than all the others put together. The valuation, counted in hundreds of billions of dollars, amazes the competition, because Tesla sells approx. 370 thousand. cars per year, when, for example, Toyota 10,5 million. Toyota's revenue for 2019 is $ 285 billion, and Tesla is $ 24,6 billion. So why such a huge disproportion of quotations? The numbers alone do not say everything. The interest in Tesla cars is much greater than in sales. Its limitation is production, because there are more orders than the factories working three shifts are able to fulfill. Today Tesla can produce 400-500 thousand. cars per year. This is really a lot, because it exceeded the first million after 17 years of existence. Another factory is being built near Berlin.

Investors undoubtedly evaluate the future, paying little attention to the basic indicators, such as the ratio of price to profit or the company's book value. What counts here is the idea and subsequent milestones showing that the development plan is consistently implemented. If we add to this the fact that the competition itself admits that Tesla is the leader in the electric car industry, technologically ahead of others by several years, then the cosmic increase in the price of Elon Musk's shares is no longer surprising.

Tesla actions, D1 interval. Source: xNUMX XTB.