Think Tesla is a bubble? This might be the best way to bet on it bursting

The huge rise in Tesla’s share price means that, by market value, it’s now the sixth-largest company in the US and and the world’s biggest car-maker. Shorting it is a dangerous game. But there are other ways to bet on the bubble bursting. John Stepek explains how.

Tesla being charged up
One day our cars will all be electric. But not for a while.
(Image credit: © Gao Yuwen/VCG via Getty Images)

Quick reminder – Merryn will be interviewing Charles Plowden of Baillie Gifford on Thursday. If you haven’t already registered to watch it, make sure you don’t miss out!

Back to this morning – I saw a very striking chart on Twitter the other day. Dylan Grice of Calderwood Capital (an occasional MoneyWeek contributor) noted that electric car-maker Tesla is now valued at roughly the same amount as the entire S&P 500 oil sector.

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.