Tesla (NASDAQ: TSLA) stock has been on a historic tear. The EV manufacturers market-cap is almost at $100 billion, and it is basking in the warm glow of strong growth prospects and risk-on trading conditions in the U.S. stock market.
Things could still get even better for Elon Musk. The worlds largest asset manager, BlackRock, announced a shift towards sustainable investments. And TSLA might just be the firms new crown jewel.
BlackRock manages an eye-watering $7 trillion fortune and oversees a portfolio that is heavily invested in fossil fuels. Thats about to change.
In his 2020 CEO letter, BlackRock chief executive Larry Fink announced the climate crisis as the catalyst for the stock market behemoths planned re-allocation, stating,
We will see changes in capital allocation more quickly than we see changes to the climate itself. In the near future and sooner than most anticipate there will be a significant reallocation of capital.
He was careful not to state there was going to be a total divestment from oil companies. This would be very impractical from a liquidity standpoint. BlackRock invests more in fossil-fuel reserves than anyone else in the world.
This commitment to green investing, suddenly leaves Tesla front and center as the perfect option for BlackRock to increase their exposure to sustainable investing.
Elon Musk made it clear from day one that his vision revolved around electric cars powered by energy harvested from the sun with solar panels.
Mad Money host Jim Cramer believes that Tesla stock is the ideal place for BlackRocks divested oil money to flow into.
Cramer went so far as to call the EV manufacturer Larry Finks ultimate stock.
This is heady praise considering BlackRocks titanic AUM figure.
It doesnt hurt that Larry Fink is already one of the largest owners of TSLA stock, and recently upped his holdings by 5.37% in November last year. Of course, Fink isnt necessarily a fan of Elon Musk, as BlackRock voted to oust the mercurial billionaire from his role as chairman in 2018.
So how much money can flow out of the pipeline and into Tesla stock? A lot.
In 2019, the asset manager had around $90 billion worth of assets in oil, coal, and gas. This is only slightly less than TSLAs entire market cap, highlighting how much capital could be re-deployed at Finks command.
BlackRock has reportedly lost $90 billion investing in fossil fuels over the last decade, so dont be fooled that Larry Fink has a sudden desire to help save the koalas.
Currently riding parabolic arc, Tesla stock is at all-time highs. The run-up appears to have been mostly fueled by a genuinely-historic short squeeze.
Its also possible that word had gotten out on Wall Street about BlackRocks upcoming shift, or even that the $7 trillion behemoth has wisely covertly started re-deploying its cash.
While it isnt clear precisely what has happened in the market, two things are apparent. Tesla stock is the perfect target for Finks push into more sustainable investments, and there is more than enough fossil fuel money on hand to drive an already-elevated TSLA to the moon.
Disclaimer: This article represents the authors opinion and should not be considered investment or trading advice from CCN.com.
This article was edited by Josiah Wilmoth.
Last modified: January 14, 2020 6:56 PM UTC
See the article here:
- Tesla is 'bitcoin on wheels' - Fox Business - January 30th, 2020
- 2020 will be the most shocking year in Tesla's history but not for any of the usual reasons - Business Insider Nordic - January 30th, 2020
- Tesla Racks Up Another Record Year (and Another Loss) - Yahoo Finance - January 30th, 2020
- Cyberphone is an iPhone 11 Pro designed to look like Tesla Cybertruck - Business Insider - Business Insider - January 30th, 2020
- Tesla unveils new Model Y wheels: berturbine and Induction wheels - Electrek - January 30th, 2020
- Tesla is on a tear and is now the world's No. 2 automaker by market capitalization - Business Insider - Business Insider - January 30th, 2020
- Tesla Energy is back to growth, thanks to cheap solar subscriptions and Solarglass - Electrek - January 30th, 2020
- Here's what every major analyst had to say about Tesla's big earnings beat - CNBC - January 30th, 2020
- Tesla earnings win praise even from doubters: We fully admit things are better than we expected - MarketWatch - January 30th, 2020
- Jim Cramer on Tesla, Facebook, and Coca-Cola's Earnings - TheStreet - January 30th, 2020
- Tesla says you'll start seeing its futuristic Semi on the road this year - Business Insider - Business Insider - January 30th, 2020
- Stocks making the biggest moves after hours: Facebook, Microsoft, Tesla, PayPal and more - CNBC - January 30th, 2020
- Tesla Stock Is Rising Ahead of Earnings and Amid Coronavirus Concerns in China - Barron's - January 30th, 2020
- YouTuber's Tesla flies over Baxter and Alvarado to gasps and criticism - The Eastsider LA - January 30th, 2020
- Tesla is about to release Q4 earnings; heres what to expect - Electrek - January 30th, 2020
- The best bullish case ever made for Tesla, according to prominent Tesla bear - MarketWatch - January 30th, 2020
- Hacker finds Tesla's S and X getting new battery options, redesigned suspension - Autoblog - January 30th, 2020
- Sapiens (SPNS) and Tesla (TSLA) Are Aggressive Growth Stocks - Zacks.com - January 30th, 2020
- Tesla Reports Earnings Today. Heres What to Expect. - Barron's - January 30th, 2020
- Theres only one stock millennials prefer over Amazon and Tesla - MarketWatch - January 30th, 2020
- Musk Counters Critics Who Say Tesla Gigafactory In Berlin Will Hurt The Environment - Yahoo Finance - January 30th, 2020
- Heres How Teslas Stock Could Hit $0 - Forbes - January 30th, 2020
- How Tesla became the world's most overvalued car company - Wired.co.uk - January 30th, 2020
- Tesla is Now Worth More than Ford and GM Combined - Visual Capitalist - January 30th, 2020
- Join The Coolest Tesla Conference Call Livestream In The Universe! - CleanTechnica - January 30th, 2020
- Tesla Powerwall helps family save over $8,000 on their power bill - Electrek - January 30th, 2020
- Tesla earnings: Will results help keep the rally alive? - MarketWatch - January 30th, 2020
- Weekend reads: Are these red flags for Tesla, Apple and Netflix? - MarketWatch - January 30th, 2020
- Everything Jim Cramer said about the stock market on 'Mad Money,' including Apple's quarter, Tesla's high expectations, Masimo CEO - CNBC - January 30th, 2020
- Tesla Model Prices, Photos, News, Reviews and Videos | Autoblog - January 19th, 2020
- Federal agency looking into Tesla driver complaints of sudden unintended acceleration - CNBC - January 19th, 2020
- Tesla is on a tear, with no end in sight. That means the naysayers' case is in ruins. - Business Insider - January 19th, 2020
- Tesla Driver Loses Control, Hits and Critically Injures Teen Girl in Long Beach - NBC Southern California - January 19th, 2020
- Tesla is now worth more than Ford and GMcombined - Ars Technica - January 19th, 2020
- Why Tesla [TSLA] Is On A Tear No Other Auto Company In The World Thats Growing That Quickly. - CleanTechnica - January 19th, 2020
- Tesla & EV Fans: The Perfect Reason You Should Be 'Going To Miami' - InsideEVs - January 19th, 2020
- Bulls And Bears Of The Week: IBM, Microsoft, Tesla And More - Yahoo Finance - January 19th, 2020
- Bitcoin fans just turned their Tesla car into a full node - The Next Web - January 19th, 2020
- Tesla stock could hit $6,000 per share in the next five years, analyst says - Yahoo Finance - January 19th, 2020
- Production Of Tesla Semi Set To Kick Off In Second Half Of 2020 - InsideEVs - January 19th, 2020
- Tesla - Paramus - 17 Photos & 17 Reviews - Car Dealers ... - January 14th, 2020
- Tesla's Elon Musk approaches $346M payout as market value soars - CNET - January 14th, 2020
- Tesla is now the most valuable US automaker ever - CNN - January 14th, 2020
- If the Telsa Rally Left You Behind, Heres What to Do - Barron's - January 14th, 2020
- Ride on Tesla's Hottest Run With These ETFs - Yahoo Finance - January 14th, 2020
- How Big Is The Tesla Model Y? - InsideEVs - January 14th, 2020
- Man caught on camera using knife to vandalize Tesla in Conifer - FOX 31 Denver - January 14th, 2020
- How the man who challenged Tesla went bankrupt - Business Insider - January 14th, 2020
- This simulator company reverse-engineered the Tesla Nrburgring lap - Ars Technica - January 14th, 2020
- Tuesday's calls of the day: Apple, Tesla, Netflix, Five Below & more. - CNBC - January 14th, 2020
- Tesla faces protest at Gigafactory 4 site over cutting down the forest - Electrek - January 14th, 2020
- Tesla All-Weather Kit: The Correction Is Worse Than The Defect - InsideEVs - January 14th, 2020
- Monday's analyst calls of the day: Tesla, Nvidia, Microsoft & more. - CNBC - January 14th, 2020
- Jim Cramer breaks down the rallies behind Tesla, Beyond Meat and Lululemon - CNBC - January 14th, 2020
- Why hydrogen cars will be Tesla's biggest threat - Business Insider - January 14th, 2020
- Teslas Stock Is On The Run; Time To Take Profits? Ask The AI Engine - Forbes - January 14th, 2020
- The Zacks Analyst Blog Highlights: Tesla, Blue Bird, PACCAR, AutoZone and Motorcar Parts of America - Yahoo Finance - January 14th, 2020
- Teslas market cap is now bigger than Fords was at its peak - MarketWatch - January 14th, 2020
- Teslas Elon Musk Teases Bitcoin Community With Tongue-In-Cheek Tweet - Forbes - January 14th, 2020
- This Bonkers Electric Quad Is The Tesla Cyberquad On Steroids - InsideEVs - January 14th, 2020
- Tesla's on a Tear: Top Takeaways From the Bank Earnings, Tesla's Price Target Bumps - TheStreet - January 14th, 2020
- Tesla: Theres None So Blind As Those Who Will Not See - Forbes - December 27th, 2019
- Tesla Scores a Win in China as Local Model 3 Gets Tax Exemption - Bloomberg - December 27th, 2019
- Tesla confirms it secured $1.6 billion in financing for Gigafactory Shanghai - Electrek - December 27th, 2019
- China races to build its own Tesla as economy slows and subsidies dry up - CNBC - December 27th, 2019
- A look at all of the awesome new features Tesla crammed into its last software update of 2019 - BGR - December 27th, 2019
- Tesla releases massive new update with text message reading, Autopilot, and more - Electrek - December 27th, 2019
- Teslas Semi Truck Could Bring In $2 Billion In Revenues By 2025 - Forbes - December 27th, 2019
- Teslas new update is all about keeping eyes on the road & hands on the wheel - Electrek - December 27th, 2019
- Here's The Story Of The Tesla Model S That Ran A Red Light And Crashed - InsideEVs - December 27th, 2019
- These charts show how the era of rampant Tesla stock volatility could be coming to an end - Business Insider - December 27th, 2019
- Tesla cars built in China have been recommended for government subsidies, report says - CNBC - December 7th, 2019
- What Drives the Tesla Superfans? - PCMag - December 7th, 2019
- Our Tesla Model 3 Is Entertaining in More Than One Way - Car and Driver - December 7th, 2019
- A top Tesla analyst raised his 'bull case' for the stock to $500, or 50% higher from here - CNBC - December 7th, 2019
- Police: Driver claims Tesla on auto-pilot when hitting 2 cars on I-95 - Thehour.com - December 7th, 2019
- Tesla is poised to deliver Model Y crossover in first quarter of 2020, says Deutsche Bank - CNBC - December 7th, 2019
- Here are the biggest analyst calls of the day: Tesla, Tapestry, Anthem, Whirlpool & more - CNBC - December 7th, 2019
- Here's how the million-mile battery could lead to Teslas lasting a lifetime - Business Insider - December 7th, 2019
- Here are the biggest analyst calls of the day: Tesla, Target, Denny's & more - CNBC - December 7th, 2019