From $20 (from the low point of the corona pandemic) to $400 – the Tesla share owes this boost to the extremely lax monetary policy of the US Federal Reserve and the associated massive liquidity. Elon Musk made it the richest man in the world. Now the tide threatens to turn. In times of rising interest rates, investors can no longer be fobbed off with hopes, facts are needed.
According to “Finanzmarktwelt”, there is also “monetary climate change”. Because of this and the Fed’s tight monetary policy, Tesla shares have lost 50 percent again.
That’s why Twitter and Tesla boss Elon Musk spoke up on his own short message service and told the Fed: “The trend is worrying. The Fed must cut interest rates immediately. It increases the likelihood of a recession.”
Musk may have recognized that correctly, but the Fed seems to accept that. The alternative isn’t much better either. That would be to let inflation take its course. The only question that remains is what is the less bad option, because there is no good one.