After share prices soared over 700% this year, so-called ‘Teslanaires’ have rocketed into wealth thanks to investing in the car company.
Now the world’s most valuable car company, Elon Musk’s Tesla has seen monumental growth over 2020 following a turbulent decade. It recently joined the S&P 500, an index of the biggest stocks in the US which includes manor companies such as Apple, Microsoft and Facebook.
Tesla is now in the top 10 of this index and boasts a wealth greater than General Motors, Ford and Toyota combined.
This is something of a surprise, given that Tesla makes significantly fewer cars than its rivals, and speaks to the strength of Tesla’s branding as well as the cult of personality around Elon Musk himself.
Those that invested early have been rewarded for their fanaticism and some are now millionaires.
The trend towards electric cars has been a major boost to Tesla stock, along with increasing demand from China which has improved car sales.
The swing towards cars with a minimal carbon impact raises the potential for subsidies for the company, and popular innovations like self-driving technology and battery power storage have further established the company as a safe investment.
For many, investing in Tesla is essentially investing in a brighter future, with an emphasis on clean technology.
However, some detractors have raised concerns that Tesla is overvalued. Researchers at JPMorgan recently said that “Tesla shares are in our view and by virtually every conventional metric not only overvalued, but dramatically so.”
They suggested that speculative fervour, rather than essential fundamentals, was what had driven the 800% growth in Tesla shares over the past two years.
Elon Musk himself is a controversial and somewhat erratic figure; earlier this year he wiped $13bn off the share price with a series of bizarre tweets.
Clearly, Tesla is polarising stock to say the least. The army of ‘Teslanaires’ points out that accusations of the company being overvalued have been there since the beginning, and that Tesla’s ambitious plans seek to solve urgent global problems. Growth, then, could continue even further.