Why does Tesla’s stock price keep rising?

US stocks opened on Monday, Tesla rose 14% during the day, the stock price climbed to 1763.89 US dollars, the market value exceeded 300 billion US dollars for the first time, becoming the tenth largest US company by market value. As of press time, Tesla’s stock price has risen 300% this year. According to the US “New York Post” report, Tesla’s stock price rose sharply last Friday, helping founder Musk to surpass Buffett with a $70.5 billion wealth value on the Bloomberg Billionaires Index and become the seventh richest person in the world.

US CNBC said that NASDAQ stocks led by Tesla continued to rise strongly, but the rest of the market was shrouded in chills. “Tesla’s flammability mania has stolen most of the market’s oxygen.”

Dong Dengxin, director of the Institute of Financial Securities of Wuhan University of Science and Technology, believes that Tesla can suppress the establishment of a factory in Shanghai against the US containment, and it is also fancy that China’s huge consumer market will bring unlimited business opportunities. Its development prospects in the Chinese market also constitute a long-term favorable support for it.

Zhong Shi, a senior automotive media person, believes that Tesla’s achievement of mass production targets is also one of the reasons for its stock price. “After Model3 came out this year, its new models and manufacturing capabilities have simultaneously achieved a positive effect, and investor confidence has greatly increased, thinking that its bottleneck problem has been solved.”

Nevertheless, there are warnings in the industry that the crazy rally in Tesla stock may soon come to an abrupt end. Matt Marley, chief market strategist at brokerage firm Miller Tabak, said, “When a stock has a 43% rise in five or six days, this will only happen before the stock crashes. If a company develops a new crown vaccine, it may be possible Soaring 43%. But stocks like Tesla that are gaining are bubbles.”

In this regard, Dong Dengxin also said that Tesla’s current stock price has overdrawn its future performance. After the Fed’s quantitative easing and flooding, on the one hand, the crisis was passed on to all countries in the world. On the other hand, the US real economy could not absorb the liquidity of flooding and could only enter the stock market, causing Tesla’s stock price to bubble. Master Zhong also believes that the future prospect of Tesla’s stock price is still difficult to say. Although Tesla’s current production capacity has increased, if its production curve cannot be further improved after reaching a certain level in the future, the market may have a different view.

The current three new crises of the New Crown Epidemic, racist protest demonstrations, and high unemployment have superimposed, leading to a more conservative mentality and worldview in the United States.

The three major crises have an order of occurrence. The first is the outbreak of the new crown epidemic, which brought a national emergency and home isolation orders in various states. The economic activities and social activities of the country except for the basic necessities of life are shut down, and people are depressed and eager to release. The high unemployment rate ranks second. The new crown epidemic has exacerbated the unemployment rate of American workers. The unemployed population soon surpassed 30 million. The people who applied for unemployment relief have queued up, especially for a large number of low-income families and the middle and lower class. Therefore, getting into trouble, food and clothing is not a problem, but raising a family has become a problem. Survival has encountered a crisis. The social demands of restarting the economy are not only in the conservative red state, but also in the liberal blue state. The black protest movement caused by police violent law enforcement ranks third. With the above-mentioned social psychological support, it has become more and more fierce, and the demands have become more and more extreme. However, demonstrations and protests are basically controlled within a safe range and have little effect on most people. Instead, they may intensify some white people’s dissatisfaction with black people. Under the catalysis of these social emotions, the polarization inherent in the American social mentality has become more prominent, and the views of various social groups on political, economic, and cultural issues have become more opposed.

This polarization in the American social mentality has a long history and is the continuation of the “cultural civil war” in the United States since the 1960s. It is mainly manifested in three aspects. The first is the polarization of cultural issues. Liberalism has many political advantages, not only in the social and economic fields such as education, medical insurance, social security, poverty alleviation and peace, but also in the fields of cultural values ​​such as employment, family stability, severe punishment of crime, respect for traditional local relations and neighborhood relations, but Since liberalism did not integrate them with the value consensus of most Americans, especially the lower-middle-class whites in the United States, it focused more on the equality of minorities, resulting in the above cultural values ​​issue since the cultural civil war. Conservative weapons. Second is the polarization of social and economic issues. In the last fifty or sixty years, conservatives have learned from liberals: “So-called social conservatives are those liberals who have a daughter in high school.” The 47-year-old housewife in the small town of Dayton, Ohio, these People who are “neither poor nor black nor younger” hold the true majority of the future of the United States, and therefore on social and economic issues such as crime rate, drug control, religion, homosexuality, family, abortion, poverty, employment, etc. Represent most Americans. Once again, the polarization of political issues. The New Deal liberalist concepts of big government, regulatory capital, social expenditure and welfare system once occupied an absolute advantage, but the high crime rate, serious social unrest and the crisis of public authority have kept liberals in trouble and conservatives resurgence. The two sides are also incompatible with each other on political issues such as government and market, government scale, social expenditure, tax reduction policy, and national defense policy.

Furthermore, the differences between American liberalism and conservatism run through the main line of history. Individualism, liberal equality, democracy and other “American beliefs”, as well as God’s voter theory and American exceptionalism, have both liberalism and conservatism. Regardless of the version, the end of the Soviet Union’s upheaval of the Cold War 30 years ago is their highlight moment, and it is also the moment when most Americans have the most confidence in the American spirit and American road. The “Historical Final Conclusion” became famous for a while because it captured the epochal characteristics of the American spirit 30 years ago. However, the “9.11” incident in 2001, the subprime mortgage crisis in 2007, the financial crisis in 2008, and the occupation of Wall Street in 2011, especially in 2020, the United States became the most serious country in the new crown epidemic in the world, all of which made the Carter era confused. The sense of loss, frustration, and sense of pride has returned to the level of American social psychology and is more prominent. The latest poll results released by Gaplow reflect the characteristic that the proportion of respondents who are “very proud” of the United States reached the lowest point in 20 years.

To a certain extent, the sense of confusion, loss, frustration, and sense of pride in social mentality may be transformed into the desire and motivation for social change. However, severe polarization has made the social structure of the United States lack the necessary flexibility. American social issues, especially the “racialization of class division” approach, have become a structured iron cage, and its internal resilience is currently insufficient to promote the formation of a fundamental political, economic, and social reorganization in the United States. Although the Trump administration means the return of some Jacksonian nationalism or Roosevelt-style populist economic nationalism, Trump himself does not have the political capabilities and political prestige of Jackson and Roosevelt Jr., and American society has a long history. The differences, divisions, and divisions of China still cannot see the possibility of easing. Liberals are more pinned on liberalism and pluralism; conservatives believe that the United States needs to return to the United States itself, abandon the unrealistic fantasy of liberal international order, look inward, solve internal social problems, and revive the United States. The two wheels of the American carriage are still traveling in different directions, and they all want the United States to move forward in accordance with its own willingness to change.

However, it should be noted that according to the author’s recent observations in the United States, today’s United States, the Trump administration’s internal and external policies of conservatism still represent the interests and will of most Americans, which means that the polarization of American society will Make most Americans more conservative as a whole. The more polarized, the more conservative the mentality of the society as a whole. This is true for internal affairs and diplomacy.