25 Oct
Tesla makes a fleet sale to bankrupt car rental business Hertz
The news of a fleet sale added 14% to the market cap of $TSLA, to make it one of the most valuable companies on the planet, selling at a higher multiple than Google, with a market cap now of ~$1 trillion. To me, this is an insane valuation, but as long as there are few sellers, the price will climb. Elon has to issue fewer and fewer shares to fund new “giga factories”, and – presumably – he can afford to hire the best car engineers on the planet.
The narrative is that old economy car makers can never compete with a disruptive entrant. Barnes and Noble failed to compete with Amazon. I am not so sure this is true, but it’s possible. As long as the wider market keeps getting more expensive, the strategy will work. When we enter a bear market, things will be different, maybe.
Wrap
Gas and most energy based commodities went up. Gas was up 12%. Food is now beginning to catch up. As someone wrote, modern agriculture is the process of converting fossil fuel energy into food, so it’s hardly surprising this is happening.
Comments !