Analyst says Tesla's stock price high 'on power of the narrative'

Tesla’s cars may run on batteries, but its stock price is fueled by “the power of the narrative”, according to an analyst with a sell rating on the shares.

In a report Thursday, Joe Spak of RBC Capital Markets marveled at how the electric-car maker has managed to add about $48 billion (Dh176.3 trillion) of market capitalisation by ginning up excitement about its quarterly vehicle deliveries.

On June 24, Tesla’s investor-relations team shared a collection of delivery estimates that found analysts on average were expecting the company to hand over about 70,300 vehicles to customers.

The market recognised this as a low bar, triggering gains that were further supported by two bullish emails chief executive Elon Musk sent to employees that leaked to several media outlets.

By the time Tesla reported 90,650 deliveries on Thursday, its shares had surged about 27 per cent over the course of seven trading days, outpacing the S&P 500’s roughly 3 per cent gain. The company added more market cap in that span than General Motors or Ford Motor’s entire valuations.

“That, is remarkable,” Mr Spak wrote. He estimates Tesla topped consensus delivery estimates by the equivalent of about $1bn of revenue, meaning investors are valuing the beat at about 47.5 times sales.

Checks continue

A High Court judge issued an interim order on Friday suspending a decision by Agriculture Minister Edwin Poots to direct a stop to Brexit agri-food checks at Northern Ireland ports.

Mr Justice Colton said he was making the temporary direction until a judicial review of the minister's unilateral action this week to order a halt to port checks that are required under the Northern Ireland Protocol.

Civil servants have yet to implement the instruction, pending legal clarity on their obligations, and checks are continuing.

The biog

Nickname: Mama Nadia to children, staff and parents

Education: Bachelors degree in English Literature with Social work from UAE University

As a child: Kept sweets on the window sill for workers, set aside money to pay for education of needy families

Holidays: Spends most of her days off at Senses often with her family who describe the centre as part of their life too

While you're here

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Damien McElroy: BRI has changed the rules of the game

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem

Rating: 4/5

The biog

Age: 19

Profession: medical student at UAE university

Favourite book: The Ocean at The End of The Lane by Neil Gaiman

Role model: Parents, followed by Fazza (Shiekh Hamdan bin Mohammed)

Favourite poet: Edger Allen Poe

Pharaoh's curse

British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.