This weekend, an intriguing event called the Tesla Takeover is set to captivate Tesla owners and enthusiasts alike. Hosted by Tesla Owners of Silicon Valley, this third-annual gathering promises to be an electrifying experience. While Tesla has no direct involvement in the event, its significance sheds light on why Tesla’s stock is highly valued by retail investors.
Similar to the world-renowned event Burning Man, the Tesla Takeover offers a remarkable atmosphere complete with delectable food and delightful bouncy castles for the kids. Moreover, attendees will have the chance to explore various exhibitors, including prominent electric vehicle manufacturer Arcimoto (ticker: FUV) and automotive performance aftermarket product company Holley (HLLY).
Of course, this diverse array of speakers reflects the unique nature of Tesla itself. While other car manufacturers like Corvette and Porsche have their own enthusiast clubs, the Tesla community stands apart for its passion not only for the cars but also for the entire Tesla ecosystem. At a meeting of Porsche 911 owners, discussions primarily revolve around the cars themselves rather than delving into complex stockholding structures.
Conversely, the upcoming Takeover event is an ideal platform for Tesla owners to engage in comprehensive conversations about Tesla’s intricate stockholding structure and its link to Porsche Automobil Holding (PAH3. Germany), Porsche (P911. Germany), and Volkswagen (VOW3. Germany). This level of depth truly sets Tesla and its community apart.
President Kelvin Gee of Tesla Owners of Silicon Valley explains that while many Tesla owners are drawn to the cars due to factors like cost savings or superb performance, their journey often leads them towards exploring the full spectrum of Tesla offerings. This includes considering Tesla solar panels, Powerwall residential battery storage products, and Tesla’s cutting-edge autonomous driving software. As a natural progression, many owners realize the immense potential for growth and innovation in the transportation and renewable energy sectors. Consequently, they develop a compelling interest in investing in Tesla stock as well.
The Tesla Takeover embodies the convergence of passion, technology, and forward-thinking that defines both Tesla as a company and its devoted community of owners. It represents a celebration of everything that makes Tesla an extraordinary force within the automotive industry and beyond.
Witness the enthusiasm and boundless possibilities at Takeover 2023—a truly remarkable event for Tesla enthusiasts.
The Power of Tesla Owners Club
Byline: Al Root
The Journey of Tesla Owners Club
Gee embarked on a journey that reflects the evolution of Tesla ownership. It all began with his first electric vehicle, a Nissan Leaf. One of the perks he enjoyed was access to HOV lanes in California. However, Gee’s journey didn’t stop there. He later upgraded to a Tesla, becoming the president of the Tesla Owners Club (TOSV). It’s important to note that being the club’s president is not his only role; Gee also works at the tech research firm Forrester Research (FORR).
The Vibrant Voice of TOSV
The Tesla Owners Club (TOSV), affectionately known as TOSV, has gained considerable attention and support. Stephen Pallotta, the Director of Business Development for TOSV, highlights the influential voice the club has become. With over 765,000 followers on Twitter/X and a follower base exceeding one million across various social media platforms, TOSV has successfully amplified its impact.
Tesla’s Adoring Retail Shareholders
TOSV’s members are passionate about their support for Tesla. In fact, the name “Tesla Owners “Strike” Virgin” (TOSV) was inspired by a significant event where club members took control of a Tesla charging station in 2021. This event exemplifies why Tesla holds such a devoted following among retail investors.
Unquestionably, retail shareholders have played a significant role in Tesla’s success. Approximately two-thirds of Tesla’s publicly traded shares are held by retail investors, surpassing the ownership percentages of many other major tech companies. As a point of comparison, only 50% of Microsoft (MSFT) stock is held by retail investors.
Implications of Retail Ownership
The high retail ownership of Tesla shares brings both opportunities and challenges. On the positive side, it leads to a more engaged shareholder base and contributes to Tesla’s impressive social media presence. However, it also introduces potential stock volatility and unique valuation multiples compared to other companies in the same industry.
A Valuable Company with Unique Comparisons
Determining how retail ownership impacts Tesla’s valuation multiple is no easy task. Tesla stands out as the most valuable car company globally, with a value approximately three times that of its closest competitor. Furthermore, Tesla accounts for a substantial share, approximately 60%, of all electric vehicles (EVs) sold in the United States. These unique factors make it challenging to find direct comparables for Tesla.
The Outlook for Tesla Investors
Both retail and institutional investors should be pleased with their Tesla holdings. Year-to-date, Tesla’s stock has soared by approximately 116%, demonstrating remarkable growth. In contrast, the S&P 500 and Nasdaq Composite have recorded gains of 20% and 38%, respectively.