Tesla has always been an anomaly, but things just keep getting weirder. And this time, it’s not because its investors seem A-okay with the company being managed by an egotistical, drug-addicted fascist who appears hellbent on manipulating the world to his horrifically twisted view of the future. Instead, the weirdness comes from Tesla performing amazingly and terribly at the same time. This is an untenable situation that strongly implies something fundamentally wrong is happening. Let me explain.
Recently, Tesla’s stock has started soaring! From its dire position earlier this year, where it seemed it would plummet so rapidly that Tesla could collapse in the near future, it has now risen by 14% compared to this time last year. Thanks to Musk buying an extra $1 billion of Tesla stock, this increase has sent his personal wealth to over $500 billion, making him the first person to ever reach that milestone.
So, why this rapid turnaround? Why is Tesla stock suddenly doing so well?
The media has pointed towards two reasons.
Firstly, focus. One of the major Tesla investor concerns was that Musk’s time was being consumed by DOGE, which not only damaged his and Tesla’s brand but also meant his hands were off the wheel at Tesla. This, along with the sales fall-off, was what caused Tesla’s stock price to plummet earlier this year. But Musk has now left DOGE and plans to fully refocus his attention on Tesla. Musk is also potentially receiving a $1 trillion pay packet to ensure his focus remains on Tesla (read more about how stupid that is here). So, the general gist is that Tesla investors are happy Musk is back and motivated and are therefore willing to pile more money in.
Secondly, Musk has bought $1 billion in Tesla stock. Now, Musk has sold off a huge portion of his stake in Tesla over the years, so this sudden purchase marks a stark change in Musk’s approach. To many investors, this signalled that he is confident in Tesla’s decision to shift to a future that focuses on AI and robotics. So, they too felt confident and slid even more money across the table.
I’m sorry, but these “reasons” feel very surface-level to me.
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