Tesla Stock Hits All-Time High

FINANCE
Tesla Stock Hits All-Time High

Tesla’s stock has reached a record high, closing at $424.77 on Wednesday, marking a 70% surge since Donald Trump’s reelection on November 5. The electric vehicle (EV) giant’s shares have nearly tripled since April, when they fell below $140 due to slowing sales and increased competition. This milestone reestablishes Tesla as a top player among America’s largest tech giants, with a market cap of $1.36 trillion, just behind Facebook-parent Meta.

Elon Musk celebrated the achievement on X, quipping that Tesla’s rally might bankrupt Bill Gates, a long-time critic with a short position in the company. This turnaround comes after earlier struggles, including a disappointing Q2 earnings call in July that raised doubts about Tesla’s valuation.

Tesla’s recent surge has been fueled by optimism surrounding Musk’s ambitious goals in autonomous driving and AI. Analysts like Bank of America and Goldman Sachs have raised their price targets to $400, reflecting growing bullish sentiment. Additionally, Trump’s administration is expected to implement a federal regulatory framework for autonomous vehicles, potentially streamlining processes that Musk has criticized.

Despite these gains, Tesla’s lofty valuation—trading at 130 times forward earnings—raises questions about whether it can deliver on its promises. Still, investor enthusiasm remains strong.

FINANCE
Tesla Stock Hits All-Time High

Sweden’s financial watchdog, Finansinspektionen (FI), has fined Klarna 500 million kronor ($45 million) for violating anti-money laundering regulations. The “buy now, pay later” fintech, valued at $14.6 billion and eyeing a U.S. IPO, was found to have “significant deficiencies” in assessing how its services could be exploited for money laundering or terrorist financing.

The investigation covered Klarna’s operations from April 2021 to March 2022. FI emphasized the importance of preventing criminal misuse of financial systems. Klarna, known for allowing shoppers to pay later in interest-free installments, stated it might appeal, arguing the fine relates to rule interpretation rather than actual money laundering cases.

Klarna noted that other major Swedish banks have also faced scrutiny under similar regulations, highlighting the complexity of compliance in the financial sector. The company said it views this as part of its ongoing effort to enhance financial security while moving toward its IPO.

SUCCESS
Elon Musk Breaks $400 Billion Milestone

Elon Musk has become the first individual in history to surpass $400 billion in net worth, reaching $439.2 billion, according to the Bloomberg Billionaires Index. A recent insider share sale of his privately held company, SpaceX, added $50 billion to his fortune, valuing the space exploration firm at $350 billion and solidifying its position as the world’s most valuable private startup.

Musk’s wealth recovery has been dramatic since late 2022, fueled by Tesla’s stock surge of 65% following Donald Trump’s election victory. Expectations that Trump will streamline self-driving car regulations and eliminate EV tax credits for Tesla’s competitors have boosted investor confidence. Musk’s role as co-head of the Department of Government Efficiency in the new administration further cements his influence.

Meanwhile, Musk’s artificial intelligence startup, xAI, has doubled in valuation to $50 billion. Despite setbacks, including a Tesla pay package ruling, Musk remains the world’s richest individual.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.