Is Tesla’s stellar stock performance a distorting force in financial markets, as Robin Wigglesworth says (“Tesla’s market heft presents quandary for US growth funds”, Report, November 6)?
He doesn’t mention that the soaring price is, quite possibly, justified by fundamentals. He reports that 90 per cent of US mutual funds failed to beat their benchmark in October, but might that be due to their poor judgment and unwillingness to depart too far from the index, rather than a distortion?
Herbert Diess, chief executive of Volkswagen, recently pointed out to his management team that Tesla takes 10 person-hours to build a car where his company is still trying to get as low as 20 — little wonder that Tesla production has seen growth of over 120 per cent for much of this year (“Not so fast: Union throws spanner into VW’s plan to cut jobs and catch Tesla on efficiency”, Report, November 5).
Financial markets, including crypto markets, are…