Tesla shares breached the $1,000 threshold in intraday trading for the first time on Wednesday, after:
- a week of Jim Cramer pumping Ron Baron’s appearance on CNBC, where he said the company’s stock could 10x from here
- mysterious call option purchases that we pointed out last month
- four workers at Tesla testing positive for coronavirus today, after our report yesterday that two other employees had tested positive days after Elon Musk fought to re-open the Fremont factory
- selling 11,095 Model 3’s in China in May
- an upgrade by Wedbush after Elon Musk’s claims that Tesla would start producing the Semi soon on Wednesday morning
- the company’s VP of Business Development in China, Robin Ren, leaving the company
The one item that continues to befuddle us is the fact that Tesla, despite how high its stock price goes, refuses to raise money by selling equity.
With the company’s valuation so patently absurd at this point, wouldn’t it be a breach of fiduciary duty to not go to the market and sell stock?