Too Fast and Electric? Tesla

Tesla and its CEO, Elon Musk, have been featured in many newspapers in early September 2020. In early 2020, Tesla reached $270 billion in market value, faster than anticipated and higher than even Toyota currently valued at $200 billion (Randewich, 2020, January 8).

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Furthermore, there was hopeful anticipation that S&P 500 Index may include Tesla or not. Elon Musk may get paid $800 million due to his stock option included in his pay package in 2018 (Grant, 2020, September 10).

Higher valuation than normally would have been a norm for Tesla. Even in its IPO 2020, market value of Tesla was higher than its operation capability. There was a concern that $15 per share might be too high for Tesla (Cowan & Jarzemsky, 2010, June 30). After the Split, Tesla stocks are around $450 per share in 2020 September, makes the company valued at $ 419 billion.

In the long run, electric vehicles are what we have to own and drive for the Planet, particularly looking at bloody smoky sky in San Francisco due to the Wild Fire. However, too fast and too much investing based on our hope may have a bumpy ride ahead unless some extra cash in hands or option at play as SoftBank showed off.

Another way to invest in EV sector would be looking at other competitors with low prices: Ford, GM, Lucid, Nikola.

Cite as:

Rachel Kim ( 2020, September 15). Too Fast and Electric? Tesla, The Blue Ocean Management, Retrieved from: https://theblueoceanmanagement.com/2020/09/15/too-fast-and-electric-tesla/

 

References:

Grant, 2020, September 10, Wall Street Journal

Cowan & Jarzemsky, 2010, June 30, Wall Street Journal

Randewich, 2020, January 8, Reuters.com

Statista, 2020, August 7, Statista.com

Rachel Kim, 2020, The Blue Ocean Management, Retrieved from: https://theblueoceanmanagement.com/2020/09/06/us-stock-market-down/