Tesla is S3XY

Tesla is S3XY

Elon Musk, it is said, wanted his first four models to spell SEXY. His first model S, his second E, his third X, and his next Y would have done the trick, save Ford owned the trademark for E. So the next best was to name the second 3 instead of E. Sounds the same.

But, seriously, Musk is well on his way to being one of the most, if not the most, significant disruptor in the world. I put him in the same class as Steve Jobs, perhaps a notch up because he is not only introducing a major new technology for all, but also perhaps saving the planet from destruction.

And, Musk has his sights now on China where he is trying to establish a factory in Shanghai. Sales of his vehicles in China last year already accounted for some 15% of revenue, but building and selling his cars big time in China turns a corner both for the company and the world. China is more committed than all but a few others to electric vehicles and serving its mass market might make Tesla a company and an investment like no other. You can be sure, as well, that Musk will not stop at China, and that over the next few years, Teslas will be manufactured in a large number of other countries.

Tesla stock has had an extraordinary move and seems at 385 to have completely moved outside any reasonable valuation. Yet, the company is so disruptive and hence so well positioned for the decade ahead that it would be foolhardy to bet against Elon Musk.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to bank transparency and the climate crisis. Since co-founding BestCashCow in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

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