The overnight surge in TSLA made Elon Musk’s company a $US trillion dollar business, very impressive on any matrix. The order by Hertz for 100,000 EV’s was only the 1st step by the rental car business to electrify its entire fleet, great publicity and I’m sure the likes of Avis & Europcar will follow suit sooner rather than later. This order will be delivered in 14-months and add $US4.2bn of revenue to TSLA explaining the 13% rally in its shares.
Short-term this may be another case of sell the fact as we have confirmation that TSLA truly has arrived but as many will testify this is not a stock to be short, any dips back under $US1000 feel like opportunities to accumulate. Interestingly most of the FANG’s actually slipped last night which adds weight to our view that the index could struggle around 16,000 and that stocks in the space which perform will still rally but on mass rising bond yields is a headwind.
MM is neutral to bullish Tesla
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