Electric enthusiasm
Although Tesla’s competition is working hard to catch up, the company remains unique.
In the years that followed the financial crisis, leading up to the launch of the Model S, Tesla found itself in need of funding, eventually debuting on the New York Stock Exchange. That made it the first new US auto company to do so since Ford in 1956, valuing the company at $2bn. That valuation grew small in Tesla’s rear view mirror quickly, with the company entering the exclusive club of companies valued north of $1 trillion — a group that’s only ever had 8 members. Although Tesla’s market cap has since fallen to the ~$680bn mark, it’s more than the next 7 most valuable carmakers, combined.
Much of that meteoric rise has been down to everyday investors that Musk has converted into a legion of loyal, often loud, devotees — who aren’t afraid to put their money where their mouth is.
The presence of retail investors, and more than a few funds looking to bet against the company, adds a unique dynamism to Tesla's stock. On a typical day, more money will change hands in Tesla than any other. Indeed, data from Koyfin reveals that so far in October, of the 10 biggest trading days of any stock, 9 were Tesla, 1 was AI powerhouse Nvidia. Indeed, the typical trading volumes of Apple and Microsoft, the two biggest companies in the world, rarely break $10bn: Tesla is averaging $29bn worth of shares changing hands every day so far in October.
