The guest commentary below was written by Jesse Felder of The Felder Report. 

Tesla Is Just The Latest In A String Of ‘Single Stock Manias’ - z hedgeye 02.05.2020 Tesla tulip cartoon

Tesla’s stock price has soared five-fold over the past nine months or so prompting CNBC’s Michael Santoli to call it a, “one-stock mania.” I agree with his assessment but I think it’s also important to note that this is not an isolated phenomenon. In fact, there have been several “one-stock manias” over the past few years.

These have included when it became a “crypto” company. It also includes Tilray when pot stocks went nuts to the upside and finally Beyond Meat after it came public last year. Clearly, investors are desperate to hop aboard the, “next big thing,” whatever that may be.

Tesla Is Just The Latest In A String Of ‘Single Stock Manias’ - Screen Shot 2020 02 04 at 11.32.33 AM

What’s especially interesting about looking at these together on the same chart is that they clearly coincide with short-term price peaks in the S&P 500, as Helene Meisler noted on Twitter earlier this week. So don’t be surprised if this parabolic blowoff move in Tesla shares marks another important pivot point for the broad stock market.

What’s more, because these single stock manias have not coincided with each other perfectly in time most don’t see them today as a sign of euphoria towards equities broadly.

But when we look back on them years from now, will we still see the several months that separated them as a true demarcation or will we see them collectively as a sign of rampant euphoria in the stock market?


This is a Hedgeye Guest Contributor piece written by Jesse Felder and reposted from The Felder Report blog. Felder has been managing money for over 20 years. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Today he lives in Bend, Oregon and publishes The Felder Report. This piece does not necessarily reflect the opinion of Hedgeye.