More Aussies now own Tesla shares than Tesla cars

The hottest stock of the year has not escaped the attention of Australian investors. Check out these mouth-opening numbers.

| More on:
Tesla shares represented by tesla driving along open road

Image source: Tesla

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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."

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.

More on Share Market News

Businessman smiles with arms outstretched after receiving good news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a lucrative return to trading for investors this Tuesday.

Read more »

Business man at desk looking out window with his arms behind his head at a view of the city and stock trends overlay.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Warren Buffett
Share Market News

$10,000 invested in Berkshire Hathaway shares 5 years ago is now worth…

The past 5 years have been especially fruitful for Berkshire Hathaway investors.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Coronado Global, Genesis Minerals, Monash IVF, and Platinum shares are sinking today

These shares are starting the week in the red. But why?

Read more »

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Mergers & Acquisitions

Johns Lyng Group shares enter trading halt. Is it a takeover target?

This ASX 200 stock looks ripe for a takeover.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Austal, Botanix, DroneShield, and NextDC shares are storming higher today

These shares are starting the week with a bang. But why?

Read more »

A female coal miner wearing a white hardhat and orange high-vis vest holds a lump of coal and smiles as the Whitehaven Coal share price rises today
Share Gainers

The Coronado Global share price just surged to a 114% weekly gain. Here's why

Investors have sent the ASX coal stock flying higher in June. But why?

Read more »

Two brokers pointing and analysing a share price.
Share Market News

Here are the ASX 20, ASX 50, ASX 100, and ASX 200 shares being added and kicked out of their indices

Let's see what changes are being made at this month's quarterly rebalance.

Read more »