Comeback 2.0

Tesla (https://seekingalpha.com/symbol/TSLA -4.2%) is taking a breather today from its torrid +50% run over the last month and +400% gain for the year. On Wall Street, Bank of America analyst John Murphy is taking a turn on explaining why the share price exploded during the pandemic recovery period. "Building capacity in the automotive industry is expensive and often generates low returns. Even if there is a future software/service/ride-hail play for TSLA (and we have our doubts), the vehicles/platform still need to be manufactured. It is important to recognize that the higher the upward spiral of TSLA's stock goes, the cheaper capital becomes to fund growth, which is then rewarded by investors with a higher stock price. The inverse of this dynamic is also true, and it is this self-fulfilling framework that appears to explain the extreme moves in TSLA stock to the upside and downside."