Enough talking, take a position

On November 11th, 2020, Tesla’s shares were priced at $400.
Now, 2 months later they are trading at $880.
More impressive is that its market cap is now $834 billion. That’s a large market cap to double in 2 months.

And while we talk about Tesla being a ‘bubble’ (insert any other adjective you care for) along with the company being worth more than 10 of the largest auto manufacturers combined, no one actually seems to talk about shorting the stock.

Incidentally, it took Apple 40 years as a public company to reach a market cap of $1 trillion (which it achieved in October 2019).

Then it only took another 10 months (by August 2020) for Apple to double its market cap.

In that time of ‘doubling’, its sales, profit and ebitda were flat.

Today, that market capitalisation sits at $2.223 billion.

January 9, 2021
by Rob Zdravevski
rob@karriasset.com.au