Tesla Motors (TSLA) rockets past $1,000, making Elon Musk a quarter-trillionaire
Matt Weller, CFA, CMT October 25, 2021 3:12 PM
Today’s big rally in Tesla (see chart below) has led to a surge in his net worth, making him arguably the richest person to ever walk the planet at roughly $250B...
So much for a quiet start to a busy week!
With more than 30% of the companies that make up the S&P 500 reporting earnings this week alone, stock traders knew it would be a hectic one, and some no doubt hoped they could cruise uneventfully through at least the first session of the week before the pandemonium kicked off.
It was not meant to be however, as Tesla Motors (TSLA), potentially the most actively-traded stock on the planet, absolutely exploded higher on news that rental company Hertz is ordering 100,000 vehicles to build out its EV fleet by the end of 2022. At $4.2B, this marks the single-largest purchase of EVs in history. Some analysts believe this lays the groundwork for other rental companies to make similarly large purchases, paving the way for more adoption of the brand among the general population. Separately, Elon Musk’s company was boosted by an upgrade at Morgan Stanley and news that its Model 3 was the first EV to top new car sales in Europe last month.
Speaking of Musk, today’s big rally in Tesla (see chart below) has led to a surge in his net worth, making him arguably the richest person to ever walk the planet at roughly $250B. As for the company itself, today’s move has driven Tesla’s market capitalization above $1T, putting in the rarified “quadruple comma” club with (only) Apple, Microsoft, Google, and Amazon as other such members.
Looking at the stock, its clear that the $1,000 level served as a big psychological target once we closed above $900 for the first time on Friday. Moving forward, it will be critical to watch whether shares can hold above the key $1,000 level this week, an area that coincidentally also marks the 127.2% Fibonacci extension of this year’s biggest dip. Above $1,000, the next level to watch from a technical perspective will be the 161.8% Fibonacci extension near $1,125; meanwhile a break back below previous-resistance-turned-support at $900 would throw the near-term bullish bias into question.
Source: TradingView, StoneX
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
- Open a Forex.com account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.