Momentum in Tesla stock price halts as global liquidity decelerates

In the past year, Tesla has been one of the main companies that benefited from the significant surge in global liquidity, which we calculate as the sum of the total assets of the 5 major central banks (Fed, ECB, BoJ, PBoC, BoE). The left chart shows that the 8-trillion-dollar rise in global liquidity last year levitated Tesla’s stock price from $100 to over $800, and the upside could be limited in the short run amid rising optimism over the vaccination campaign and the reopening of the economy as warmer days are getting closer.

What would Tesla share price be worth if we were to remove the 8tr USD of liquidity added in 2020? (most likely much lower…)

Source Eikon Reuters, RR calculations

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