Elon is coming for it all. Why Tesla is going much higher.

From cars to chargers to power to off-shoot enterprises in robotics, AI and batteries, a hugely back-ordered cyber truck and ability to lure buyers with self-driving tech, Tesla is just getting going.

Tesla bears point to the EV juggernaut’s high valuation, shrinking margins, eccentric CEO, and growing competition in the EV space to justify their TSLA short positioning. They describe the company’s meteoric stock price ascent over the last month as detached from fundamentals and rooted in “hoopla.” They lost big on their short bets, as Tesla’s share valuation increased by $240 billion in just 13 trading days, which is a run greater than the entire value of the world’s second most valuable auto manufacturer, Toyota.

In my previous post, I explained how Tesla has just started its ascent, and why it is headed higher. This move is based, in part, on Tesla’s recent Ford and GM supercharger tie-up.  When you get your mind around the fact that 60% of EVs on U.S. roads will now use the Tesla charging network, you know it means the death knell of the Biden-backed inferior charging network.  With most EV drivers heading to Tesla superchargers and charging networks like EVgo adding Tesla NACS connectors, it will mean untold benefits for the EV pioneer.  Wedbush analyst Dan Ives says the Ford and GM tie-ups alone will net a 22% increase in Tesla’s share price.

Just as Tesla’s independent selling model cut into the traditional car dealer mafia, so too its superior charging network will cut into the mom-and-pop gas station business.  With 1000-mile-a-charge EVs already here, pitstops are going to be less frequent and will increasingly be at Tesla superchargers, which are not necessarily positioned at “gas” stations.

NYC taxi drivers were miffed that the value of their pricey medallions was crushed by the arrival of Uber and Lyft.  Gas station owners could become the new taxi drivers as Tesla’s network becomes omnipresent.  With California and many other states banning the sale of new gas-powered cars by 2035, most drivers will be seeking the fastest, strongest EV charge available.  Arco, BP, Chevron, Conoco, Exxon, Shell, and their ilk will need to scramble to compete with Tesla’s charging network.  Don’t be surprised if they also partner with Tesla just to save their station network.  More dinheiro to Tesla and higher stock price.  But it does not stop there.

We are witnessing a seismic shift in the energy business.  Though it’s always risky to count Big Oil out, the Ukraine War will likely be its nadir.  The Saudis know this, which is why they are investing heavily in non-oil enterprises.  For example, last week, they essentially bought out the politically tone-deaf PGA, never mind Crown Prince Mohammed bin Salman’s brutal assassination of Saudi American journalist Jamal Khashoggi.  Musk has baggage, but not Saudi chopped-up body parts baggage.  Once Musk has cut into Big Oil and major automakers, he might come for the House of Saud itself, despite the Kingdom Holding Company’s sizable investment in Musk-owned Twitter.  It’s not out of the question.

Europe is no safe haven either.  Putin’s darkly NeoCon invasion of Ukraine has inspired the continent to quickly shift away from most fossil fuels.  EVs will become the norm, and, in Europe, most will be equipped with both types of charging systems.  Advantage: Tesla.  Meanwhile, Tesla’s Giga factory in Germany will be turning out cars for the eager Europa EV buyer, with consequences for Audi, BMW, Fiat, Mercedes, and Porsche, who will, one by one, start partnering with the Tesla supercharging ecosystem.  

Already armed with Solar City, Tesla could then expand into sustainable power generation, directly taking on leading Chinese solar manufacturers too. Throw in Tesla’s off-shoot enterprises in robotics and battery storage, its forthcoming and massively back-ordered cyber truck, and its ability to lure in middle-class customers in China and the U.S. with its relatively inexpensive Model 3’s and cutting-edge self-driving technology, and the sky is the limit.  From cars to stations to power itself, Elon Musk is coming for ALL the money as the move to electric hits warp speed.