Tesla’s Nasdaq-listed valuation surpassed $1 trillion yesterday, Monday. The stock closed at an all-time high of $1,024.86 after Hertz announced plans to order 100,000 Tesla vehicles and a Morgan Stanley analyst predicted that the executive will be the world’s first billionaire thanks to Space X, his special company. Musk himself celebrated this milestone on Twitter.
In the report, Morgan Stanley considered the firm to be multiple companies in one, spanning space infrastructure, earth observation, space exploration and other industries. It further noted that its Starlink satellite communications business is the largest contributor to its valuation estimate. Bloomberg also revealed that the Hertz deal will allow Tesla to generate profits of about $4.2 billion.
Musk surpasses the $193 billion personal wealth of Amazon CEO Jeff Bezos and is above the combined wealth of Bill Gates and Mark Zuckerberg. Tesla even exceeds the market share of its competitors in electric car manufacturing.
The inflation warning
“I don’t know about the long term, but in the short term we are seeing strong inflationary pressure,” he said on Twitter, responding to a thread by Cathie Wood, CEO of Ark Investment Management, about inflation. According to Wood, new technologies will help “bend the curve” on inflation despite recent supply chain bottlenecks related to Covid-19 and oil supply constraints.
“Artificial intelligence, electric vehicles, robotics, genomic sequencing and blockchain technology are among the phenomena that will help moderate price pressures,” notes the founder of Ark Investment Management in her Twitter thread.
Experts wondered if Musk’s thoughts on inflationary pressures will be widespread for U.S. companies. “If this is the case, and I suspect it is, I don’t know how much longer the Fed can continue to ignore inflation,” warns Eamonn Sheridan, market analyst at Forex Live.
So the social media headline debate on inflation continues. This week, Twitter CEO Jack Dorsey caused a stir on Twitter after warning of impending hyperinflation that will “change everything.” Economist Steve Hanke, known as a cryptocurrency skeptic, criticized Dorsey for these comments. He pointed to the fact that no country in the world, including Venezuela, is currently experiencing hyperinflation.