(For Those Who Say I Just Don’t Get It…Get This)
From my note “Perspective” only a few days ago. To wit:
To all those that have argued with me that I “…just don’t get it!” when it comes to the capital markets and what they’ve become. All I’ll ask of you is this:
Tesla™ today became the largest, repeat, the largest automaker per market cap in the world. Its share priced rocketed (once again, pun intended) to $1,130.00 per share giving it a market cap of $210BILLION surpassing the former #1 known as Toyota™ at around $202billion.
Tesla is for all intents and purposes a boutique car manufacturer with a global market share of just 0.5%. And yes, that’s one half of one percent and is not a typo.
Please explain. It’s OK, I’ll listen. But I can’t promise you I won’t laugh. Just to be clear.
Welcome to today’s “picture” for laughter… (NOTE: I have added an updated chart at the bottom to show the close of today’s session. It speaks for itself)
And for those that may be a bit math challenged, let me put it this way…
The entire globe is in a car maker, market, for both new and used – market collapse. 50 million people in the U.S. alone are now unemployed. China is even in worse shape in regards to car sales.
And Tesla™ market cap has increased over the past few days by some $65 BILLION. e.g, as of this writing to $275,890,000,000.00 (BILLION.)
Makes perfect sense, that is, if you have a PhD and teach “business” in one of today’s Ivy League.
It would be laugh down hysterical if it wasn’t such a tragedy that will end far worse than badly for many.
Updated chart, to wit:
More perspective: Tesla is now larger than Ford™, GM™, BMW™, Diamler™ and Volkswagen™.
And just to clarify: Not bigger than any of them, but rather, bigger than all of them combined.
© 2020 Mark St.Cyr
Footnote: These “FTWSIJDGIGT” articles came into being when many of the topics I had opined on over the years were being openly criticized for “having no clue”. Yet, over the years, these insights came back around showing maybe I knew a little bit more than some were giving me credit for. It was my way of tongue-in-cheek as to not use the old “I told you so” analogy. I’m saying this purely for the benefit of those who may be new or reading here for the first time. I never wanted or want to seem like I’m doing the “Nah, nah, nah, nah, nah” type of response to my detractors. I’d rather let the chips fall – good or bad – and let readers decide the credibility of either side. Occasionally however, there are and have been times they do need to be pointed out, which is why these now have taken on a life of their own. (i.e., something of significance per se that may have a direct impact on one’s business etc., etc.) And readers, colleagues, and others have requested their continuance.