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Musk is by far the richest person on Earth – Tesla breaking records

What is the reason behind the increasing attention to Elon Musk and Tesla in the past couple of days? One can say that it is due to the biggest car rental company in the United States – Hertz. This company has made a deal Tesla to buy more than 100 000 cars, which it plans to rent out in the future.

Share price on a rise

This immediately reflected on the price of Tesla shares. Ever since the news broke out the shares of this company increased by 20 %. Yet, the attention around Tesla has been there for more tahn couple of days, since the shares of Tesla very already considered to be in a bubble. Nevertheless, Tesla broke its ATH, which means that it is now in a price discovery stage.

What does this mean? Well looking from the perspective of Technical Analysis, there is a huge advantage to breaking the ATH since there are no more resistances above the price that could push it down. It is very common to see the shares, as well as cryptocurrencies, to rise right after they broke their previous ATH.

Tesla share price at its ATH Share price of Tesla

Tesla versus the rest of automotive companies

If you still believe that the shares of Tesla are not in the bubble and its rise is based on reasonable fundamentals, let´s have a look at the graphics below. As of now, Tesla has the same market capitalisation as all the other automotive companies combined. And we are not talking about small companies, but car giants like Mercedes, BMW, Ferrari, Volkswagen or Toyota, which are responsible for majority of car sales.

Tesla vs automotive companies Market value of Tesla vs other automative companies, Source: wolfstreet.com

Musk is by far the richest person on the planet

The rise of Tesla shares not only meant that the company made its ATH in several metrics, but it also helped its CEO to become by far the richest person on the planet. Last few weeks we were able to see some kind of the “back-and-forth” between Musk and Bezos, when it comes to their wealth, but thanks to this rise Musk took the lead. Only this year, Elon Musk has made more money than legendary investor Warren Buffet over his entire career. And that is definitely something.

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

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