Call It The Elon Musk Effect
The "Amazon Effect" has forced all retailers to step up their “omnichannel” game or face extinction. The ominichannel phenomenon is the ability to compete through brick and mortar and online by redesigning distribution networks and streamline supply chain operations to best serve customers on and offline.
There is also a thing called the “Elon Musk” effect. About a month ago, his SpaceX made history, taking NASA astronauts Doug Hurley and Bob Behnken to space aboard its Crew Dragon spacecraft using a Falcon 9 rocket. On the news, Richard Branson’s Virgin Galactic stock rises almost 10% at the open the next trading day.
To ridicule short-sellers that have been shorted Tesla’s stock for years, Elon decides to sale limited edition red satin shorts retailed for $69.420 USD, only to see the website crash because of all the traffic and demand for the shorts.
Through the years, Elon Musk has established and acquired a number of companies that are having effect on our society. Some of the companies include, but are not limited to SpaceX, Tesla, SolarCity, Hyperloop, and the OpenAI. To be honest, some of these companies I have nerve heard of. For example, November 2017, Elon Musk acquired PERBIX that manufactures build-to-print equipment and custom automation systems.
But probably the biggest disruption Elon is impacting is in the automotive industry, specifically the electric car market. About two weeks ago, Tesla has become the world's most valuable carmaker, $4 billion more than Toyota, after its stock hit a record high. But Billionaire investor Ron Baron believes there’s still plenty of room for growth and thinks Tesla could hit “at least” $1 trillion in revenue in 10 years.
When it comes to the stocks that are catching the attention of Robinhood investors (looking at you, Millennials), it’s hard to deny the appeal of Tesla. Tesla has remained one of the most popular stocks on Robinhood with over 396,000 invested in the stock as of July 8.
After quadrupling the market capitalization of Ford and General Motors combined, shares of Tesla soared past $1,400 Tuesday. The stock has gained more than 227% in 2020 and has marked more than a 5,000% gain since its initial public offering just over 10 years ago.
So why is the stock so appealing to the Robinhood investors of the world? Jim Cramer said it all comes down to innovation as millennials seek out the companies who will define the future.
Which leaves the question…which startup will be the next Tesla and can there be another Tesla?
Nio manufactures and markets electric vehicles. Nio was founded in 2014 and is headquartered in Shanghai, China and already has financial backing from Baidu and Tencent. They too have an aggressive global long term plan which includes mobile charging stations inside electric vans, several electric car service centers, and battery swap stations. Recently, the stock was on track for a fifth-straight gain, to the highest price seen during regular session hours since Sept. 14, 2018.
Workhorse Group Inc. designs, manufactures, builds, sells, and leases battery-electric vehicles and aircraft in the United States. Its products include electric cargo vans, and medium and light-duty pickup trucks, as well as HorseFly delivery drones systems.
A couple of weeks ago, Workhouse announced today that it has successfully completed Federal Motor Vehicle Safety Standards (FMVSS) testing for its C650 and C1000 all-electric delivery vans. This is a big deal because the company could be awarded the Next Generation Delivery Vehicle contract by the U.S. Postal Service before the year is up. We are talking as many as 180,000 vehicles.
Ideanomics, Inc. focuses on monetizing the adoption of commercial electric vehicles, associated energy consumption, and developing financial services and Fintech products. In mid-June, Ideanomics reported that subsidiary Mobile Energy Global secured an order for 300 EVs from ride-hailing company Didi Chuxing. Ideanomics shares skyrocketed more than 700% in the first three weeks of June and increased about 100% in the last month.
The Elon Musk Effect is real and I think it's just getting started as many of us feel we missed the Tesla boat and try to find the next Tesla. Can one of these companies be the next Tesla. I doubt it, but is there room at the dinner table for more than one company to eat, yes?
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Posted Using LeoFinance
