Part 7/11:
The surge in Tesla’s stock appears to reflect an enthusiastic rally within the EV and AI sectors, compounded by a possible fear-of-missing-out (FOMO) among investors. The EV rally is further supported by macroeconomic factors such as increased interest in AI, leading to a wave of optimism reminiscent of previous tech booms.
Tesla’s competitors, including Ford, GM, Rivian, and Nicola, have also experienced rising stock prices, with some such as Nicola seeing meteoric gains of over 100% in a single month—though such spikes often reflect speculative short-term trades rather than fundamental strength. The industry as a whole is leaning into EVs, driven by regulatory incentives and consumer preferences, although concerns about higher borrowing costs and economic slowdown linger.