Yahoo Finance The Real Story Behind Tesla’s Crazy Rally
As Elon Musk settles into being richer than Warren Buffett, NLW looks at what is driving the Tesla ($TSLA) stock rally.
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This episode is sponsored by Bitstamp and Crypto.com.
Today on the Brief:
Wall Street quarterly earnings season opens
Investor flock to higher-yielding Chinese government bonds
Bitcoin whales go down but other types of HODLers go up
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Main topic: What the hell is going on with $TSLA?
Elon Musk is now richer than Warren Buffett. A year ago, Tesla wasn’t as valuable as Ford or GM. Now it’s more than 25% of the value of the auto market as a whole.
In this episode, NLW looks at a set of possible explanations:
Elon as a Golden God/the cult of personality
Tesla as an innovative tech company
Better-than-expected vehicle delivery
The mother of all short squeezes
Robinhood effect
Mr. FEDerico
Narrative Market Machine
See also: The Definitive Guide to Doge’s TikTok Pump
Related: Does COVID-19 Have the World Rethinking Dollar Supremacy?
In the end, NLW argues that in a world where 1) the new retail base is willing to engage in narrative and meme warfare and 2) where the Federal Reserve distorts prices, the narrative market machine becomes more of a driver of prices than ever before.
