Elon Musk is undoubtedly one of the few people in the world to have a very good year 2020. At the beginning of February, the Tesla share took off on the stock market and its price quadrupled in a few months.
As of this summer, Tesla has been the automaker with the highest market capitalization in the world. After taking this step, the price of its share continued to rise, to now offer the firm a market capitalization hovering around $ 200 billion.
In mid-August, Tesla split its shares by dividing them by five. This means that the shares are cheaper, but there is more. This split allows the company to capture the investments of amateur traders, which proliferated during the lockdown. In June, on the Robinhood app, 10,000 people bought Tesla shares every hour.
Contrary to other specialists with unwavering enthusiasm, a growing number of analysts are however worried about this frenzy, considered disconnected from reality. According to Le Monde, Tesla has sold less than 390,000 vehicles in the last twelve months, much less than more stable conventional manufacturers like Ford, Toyota or PSA.
For David Trainer, CEO of the stock market analysis firm New Constructs, "Even if Tesla produced 30 million vehicles in ten years […] by achieving the same margins as Toyota, which is the most efficient manufacturer on the market, the current price of the shares would be too high ”.
For him, Tesla is the"Most dangerous action on Wall Street" and "One of the greatest card houses in history, ready to fall". Already in June, analysts at Morgan Stanley bank estimated Tesla's value to be vastly overvalued, explaining that traders tended to think of Tesla as a tech company, just like Apple or Uber.
This image was maintained by the company itself, which was called Tesla Motors until 2017, before changing its name to bring "Motors" to oblivion.
But the automotive business involves very different risks and obligations than tech. Being a giant in the stock market but a dwarf when it comes to production and sales cannot be sustainable forever, especially when possible profits are so hard to fight.
Elon musk he himself tweeted on 1er may that his firm's stock price was, for his taste, too high. A tweet after which the price quickly plummeted … before rising just as quickly.