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At some point, Elon Musk will hop into one of his SpaceX rockets and set up shop on Mars. His goal is to colonize the red planet as well as fill every road and highway on Earth with his electric Tesla cars, for he is a man with galaxy-sized ambitions.
No doubt he will leave an enormous statue of himself behind so that any investor in the distant future who misses his glorious presence can kneel before it, kissing the bronze feet of the dope-smoking executive who turned a low-volume maker of money-losing cars into a company worth more than all its competitors combined.
Well, he did for a few moments. The question is whether those moments will return, given Tesla’s outlandish, gravity-defying valuation. This week, Tesla shares finally cracked after one of the most stupendous rallies ever seen in the tech sector.
On Tuesday alone the shares lost 21 per cent, wiping US$80-billion off the valuation of the company, equivalent to the combined value of General Motors Co. and Ford Motor Co..
The tumble came after the company announced it would sell US$5-billion in new shares and learned that it hadn’t made the cut for the S&P 500 Index.
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