Financial Froth Or When Elon Musk, Like Poseidon, Launched Waves To Attract Funds

In love, as in business, a wave of support and positivity can lead a company to the top. Elon Musk, the Poseidon of markets, attracted investors and created a “financial tsunami” around Tesla. How did this happen? The following article explores how a culture of solidarity within management committees can be achieved.

Between November 1, 2020, and January 31, 2021, Tesla market capitalization increased from $372 billion to $761 billion. This growth represented the combined market capitalization of the world's nine largest car manufacturers. The figures were both astonishing and significant. To put it in perspective, $389 billion is roughly equivalent to the annual GDP of the 25 poorest countries in the world combined, according to the IMF.

How did this stock market tsunami growth happen? What part did Elon Musk’s leadership, play in it? What inspiration can we draw from it for our management committees?

To find the answers, I asked my friend Athena, who helped Philip Morris realize his dream of a smoke-free world. Athena is a free woman, as free as a bird, and she was born under the Pisces sign. This is what she told me: “Ludo, I have a hunch about this! Meet me... where you know.” This location is a secret public garden in the heart of the Marais, Paris (I would be happy to share the exact address; please send me a private message if you're interested). Athena and I usually meet there for tea (from my thermos) on a public bench. After a quick namaste, Athena showed me the Tesla graph and said, “Oh my God, Tesla invented the perpetual wave machine! You know that mythical wave for surfers? Well, it has become a reality for traders.”

Athena and I enjoy sitting side by side on this park bench, watching American share prices exceed their index. We find beauty in the fluctuations of stock market prices, which rise and fall like waves, driven by the confidence of numerous investment funds. While some economists criticize the "irrational exuberance" of the markets, we appreciate this financial bubble machine. Of course, every now and then, it does burst.

Johann Nouveau, a co-founder of the new 3-5-7 fund alongside Vincent Igual, taught us to observe the fluctuating behavior of market trends. A true "surfer" in the stock market, Johann explained that net rises are always followed by periods of rest. Just as surfers scan the horizon of the Atlantic Ocean, Johann analyzes stock movements across the Atlantic. When he identifies stocks with improving performance, he adds them to his acquisition radar. He believes in the importance of timing: “Better to anticipate than to arrive too late,” he often says. The key is to aim for the low point of the wave, where buyers' strength is increasing, and to exit before the stock decreases. If market conditions worsen, it’s wise to limit exposure, pause, and wait for a better opportunity.

This world is not to the taste of many people who would rather like to see equanimity in the markets, a kind of emotional frugality built on regular performances as in real estate sector. The property speculators, keen fans of yoga and Buddhism, make their strategy very clear. An interest rate averaging 0% for their most protected employees, a leverage effect of up to 100%, 0% capital gains on PR. But equanimity is not a highly valued commodity. According to an American financial analyst, they prefer “upward surges similar to Hawaiian waves”.

From our observation point on the park bench, we ponder the reasons behind this historic craze. “Perhaps there’s a musk effect,” Athena suggests with a laugh, referring to the scent used in some deodorants that supposedly makes men irresistibly attractive. I offer a more spiritual hypothesis: “Or maybe Elon is a new prophet from Mars who aspires to turn us into his satellites while smoking his calumet every night. This man, whom I greatly admire, claims that in five years, we will be able to understand each other without even speaking as long as we grant him direct access to our brains. Or perhaps he whispers mathematical hymns to analysts as he does to his son, X Æ A-12, when putting him to sleep each night.” Athena counters with an out-of-the-box, almost Freudian perspective: “Or maybe Tesla appeals to buyers’ dual desires to satisfy their superego (since these cars are environmentally friendly) and their id (because they represent the latest models, outpacing those of the past).”

It seems like our explanations are going in circles. Athena says to me : “You know, when the French president Jacques Chirac said "Troubles come in waves”. He forgot to add that happiness also comes in waves. A wave of encouragement can significantly boost commitment. Positive feedback has the power to lift you, even when you're feeling down. A simple congratulations can warm any heart. We always can create and share waves of congratulations with our fellow human beings. Joseph Campbell’s idea of “Follow your bliss” promises to carry us forward and open unexpected doors. My enthusiastic, though not entirely irrational, coaching hypothesis is that the Tesla Board may have fostered waves of kindness.

In early November 2020, Elon Musk was well aware that Tesla would soon be joining the S&P 500, resulting in its earnings per share (EPS) increasing from $0.03 to $2.24. He might have said, “Entering the S&P 500 will attract investment funds. Even though $2.24 for a $400 share is relatively minimal, it will mark the first time we are actually profitable! The key question is how to maintain this momentum. If we foster a spirit of collaboration within our committee, we can create a thriving stock market.”

I suggest that each week, we dedicate ourselves to supporting one person in our group. That person’s goals will become our collective priority. We will fully commit to being at their service as we never have been for anyone else before. We will encourage them by saying, “Yes, it is possible! Go for it! Well done! You are the best! Why not? I love you!” Our faith in this person will be as unwavering as the trust we place in our family and close friends. Our desire to help will be as strong as the love we direct toward our children and parents. We will do everything in our power to support them and celebrate their successes, setting aside any rivalries and rejoicing in their achievements. We will offer them seven days of unconditional love that they will remember for a lifetime. Their successes will be celebrated publicly, leaving the market amazed and caught up in the excitement. If we manage this well, we could achieve several weeks of upward momentum before reaching a stable point high enough that the support continues. Let’s go for it—it's now or never!

While skeptics may remain in their rabbit holes, pragmatists might try to generate waves of kindness to gain momentum as they surf.

Sentimentalement vôtre

Crédit photo : © Daniel Oberhaus (2018) creative commons