Electric-Vehicle Mania Lifts Tesla, Nasdaq Today
It's hard to compare the giddiness the market has for the likes of Nikola and Workhourse with how cautious it is with Tesla. From $1000 to $1100 is only a 10% gain, but it feels like a much bigger move than a 10% bounce in Nikola.
Also it think it is a bit silly for anti-Tesla folks to act like these other upstarts are serious challengers to Tesla. Firstly, they must be serious threats to legacy vehicle makers. If they can't take maket share from GM or Freightliner, they can't take anything from Tesla. Secondly, these upstarts have not cut any production teeth. As Musk pointed out, the engineering effort to design the manufacturing process for a vehicle is about 100 times the effort level of designing the vehicle. I think these upstarts deserve the chance to try to manufacture, but giddy investors will experience a lot of pain when these companies are put to that test.
So I don't think this giddiness will transfer from the likes of NKLA to TSLA, but a more somber appraisal might transfer in the opposite direction.
It's hard to compare the giddiness the market has for the likes of Nikola and Workhourse with how cautious it is with Tesla. From $1000 to $1100 is only a 10% gain, but it feels like a much bigger move than a 10% bounce in Nikola.
Also it think it is a bit silly for anti-Tesla folks to act like these other upstarts are serious challengers to Tesla. Firstly, they must be serious threats to legacy vehicle makers. If they can't take maket share from GM or Freightliner, they can't take anything from Tesla. Secondly, these upstarts have not cut any production teeth. As Musk pointed out, the engineering effort to design the manufacturing process for a vehicle is about 100 times the effort level of designing the vehicle. I think these upstarts deserve the chance to try to manufacture, but giddy investors will experience a lot of pain when these companies are put to that test.
So I don't think this giddiness will transfer from the likes of NKLA to TSLA, but a more somber appraisal might transfer in the opposite direction.