The market always makes sense in hindsight. Let me share why the market has been crazy about Tesla since Nov 2019.
Once upon a time i.e. before Oct 2019: Tesla was known for missing delivery targets, production milestones. Musk was never considered good at managing expectations
Tesla's factory in Shanghai changed that perception for good. That was the biggest shock element for the market which was extremely bearish on Tesla. There were people who had bet everything that Tesla would go down to zero.
The world turned upside down
Stock Price movement is a function of how people are positioned in the stock which usually reflects expectations and when that change...the price movement is dramatic.
Breakout to new high is the starting point of a new journey
Stock prices reflect enthusiasm which an objective mind can ridicule. But that's how life works. People get carried away in good times. Tesla is delivering. It has a huge market to cater to.
Total global electric vehicle sales in 2019 were just about 2 million...so tiny
What do we learn from this experience?
Focus on surprise element
Another great example...why breakout to new high matters
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.