Social Capital's Chamath Palihapitiya said Tesla (NASDAQ: TSLA) will double and triple again, with the next big disruption in the future. He noted that the richest person in the world should be the person who is "fixing and fighting climate change,” which is fully in line with what Tesla CEO Elon Musk is doing.
Tesla's share price, considered by critics to be very high, will receive a strong boost in the world's large-scale transition to clean energy. “The big disruption that's coming is to power utilities,” Palihapitiya said on CNBC's “Halftime Report.” “There are trillions of dollars of bonds, of CAPEX and of value sitting inside the energy generation infrastructure of the world that's going to go upside down. And when that goes pear-shaped, Tesla will double and triple again."
In 2020, Tesla shares are up more than 740%, and the beginning of 2021 was a logical continuation of this. After the company confirmed that it has delivered half a million vehicles planned for 2020, despite difficulties due to the influence of COVID-19, investors have even more confidence in Tesla's strength. Investor trust is reflected in the fact that today the value of TSLA has soared to a record $809.63 (at the time of this writing) and reached a market capitalization of $767.5 billion.
Today's rally has caused Musk's fortune to increase even further, and he became the richest person on Earth. Nevertheless, we should not forget that we should judge him by the deeds and actions of his companies, which make an invaluable contribution to the development of mankind.
“The world’s richest person should be someone fixing and fighting climate change,” Palihapitiya said. "The reality is that Tesla is a distributed energy business. They are figuring out how to harness energy, store it and how to use it in a way to allow humans to be productive. Cars are a manifestation. Solar panels are as well. Powerwalls are as well."
While many Wall Street analysts have expressed concern about Tesla share's high cost, Palihapitiya said investors should stick with entrepreneurs making important changes in the world.
“I don’t understand why people are so focused on selling things that work. When things are working, you are paid to stay with people who know what they are doing,” he said. “This is a guy who has consistently been one of the most important entrepreneurs in the world, why bet against him.”
“Delivering clean energy and allowing the world to be sustainable is an incredibly important thing that will be rewarded by markets and individuals,” Palihapitiya added.
© 2020, Eva Fox. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.