More Aussies now own Tesla shares than Tesla cars

Australians are going so mad for Tesla Inc (NASDAQ: TSLA) shares that there are now more shareholders than customers in this country.

On one trading platform alone, Stake, more than 17,000 Australians have bought a stake in Tesla. Stake’s research suggests about 10,000 Australians actually own a Tesla car.

Stake chief executive Matt Leibowitz told The Motley Fool the electric vehicle sector is hot with Australian investors now.

“Tesla is undeniably the market leader with approximately 3 times larger market share than 2nd placed Volkswagen.”

More than $442 million has been transacted for Tesla shares through Stake this year. That’s 1840% up on last year’s $22.8 million.

Tesla’s cultural cache

The Tesla brand has built up a “cultural cache”, according to Leibowitz, and this stirs up passions that raw financial figures can never replicate.

“Whether it be selling Tequila or short-shorts for $69.420, it’s become the sort of brand that recruits loyal followers not just transactional customers — Apple-esque.”

Tesla shares started the year at US$86.05. It is now at $555.38 — multiplying 6.5 times in just 11 months, notwithstanding a COVID-19 market crash.

The incredible rise has made its boss Elon Musk the second wealthiest person in the world this week.

The Motley Fool asked Leibowitz how much higher the share price can go when the inflation is all based on potential future earnings.

“While the market prices in future potential, no one actually has a crystal ball,” he said.

“Tesla’s been driving itself for many years but now the category is taking on a life of its own. Modern players like Nio Inc (NYSE: NIO) and Electrameccanica Vehicles Corp (NASDAQ: SOLO) are creating excitement — these are also amongst Stake most traded — and this lifts the whole category.”

Electric vehicles finally take centre stage

Leibowitz said the public is only just starting to understand the potential market for electric vehicles.

“For example, cars aside, Business Wire have estimated the charging infrastructure market alone to be a US$112 billion business by 2027,” he said.

“This is one of those industries that is really poised to completely disrupt and overhaul its predecessors and when you’re at the beginning of that inflection point, potential growth is enormous.”

Taking advantage of the cult status of the brand, Stake has partnered with the official Tesla Owner’s Club in Australia to put on an electric vehicle time trial event on Monday.

The event is claiming to be a world first, and has ambitions to insert itself as an annual fixture in the Australian motorsport calendar.

“It’s these category-and-culture leading brands that can really stir the popularity of investors the world over.”

More reading

• Here are the US shares that CommSec customers are buying
• Tesla stock could surge 104% to $1,000, according to this analyst
• Elon Musk is now the world’s second richest person
• It’s official: Like it or not, millions will own Tesla stock soon
• Tesla (NASDAQ:TSLA) share price zooms 8% on S&P 500 news

Tony Yoo owns shares of NIO Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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