Is Elon Musk the New Larry Ellison?

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

In a move that certainly didn't seem likely just a few months ago, Tesla Motors (NASDAQ: TSLA  ) will be added to the Nasdaq 100 to replace Oracle (NYSE: ORCL  ) next week.

No, the enterprise software giant didn't fall out of favor. Oracle is migrating to the New York Stock Exchange, and that's naturally a one-way ticket out of a widely followed index that tracks the 100 largest non-financial securities on the exchange based on market cap.

Tesla earned the vacant spot after seeing its shares nearly triple over the past three months. A surprising profit for the electric-car manufacturer and some daring sales-boosting initiatives have turned the company into a darling in a revitalized automaker market. 

It will still be seen as Oracle CEO Larry Ellison passing the baton to Tesla CEO Elon Musk. These are two of the more colorful corporate chieftains, even if they go about different ways in wearing their charismatic ways.

Ellison has never shied away from calling out competitors in conference calls. Musk hasn't taunted the competition, but he hasn't been afraid to personally call out an unimpressed newspaper reviewer. Musk also isn't afraid to drop hints on Twitter about upcoming Tesla announcements, something that seemed controversial at the time but which the SEC went on to approve.  

This has been a redemptive year for Musk.

SolarCity (NASDAQ: SCTY  )  -- the installer of the solar energy panels that went public late last year to little fanfare -- has seen its stock nearly quadruple so far in 2013. Musk is SolarCity's largest investor and its chairman. When you combine SolarCity's tear as renewable energy begins to regain some of its allure with investors and Tesla's stock recent tear, Musk has seen his wealth explode this year -- at least on paper.

SolarCity isn't likely to join Tesla int he Nasdaq 100 anytime soon. Despite catapulting in price this year, we're still talking about a $3 billion company that is profitless. There are also questions about its moat, since the pricing model at SolarCity can be easily aped by rival installers. Tesla also has its challenges, but it's hard to ignore its juicy $14 billion market cap.

It will be interesting to see if Tesla's market cap inches even higher as indexers following the Nasdaq 100 buy in ahead of the July 15 switch, but either way it seems as if Musk has done nothing but shift into higher gears this year.

Get ready for the next energy revolution
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 


Read/Post Comments (7) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 09, 2013, at 9:00 PM, FF2point0 wrote:

    Perhaps a comparison to Steve Jobs would be more flattering, or some combination of the two.

  • Report this Comment On July 09, 2013, at 9:49 PM, johaba wrote:

    Please, Larry Ellison wishes he was Elon Musk.

  • Report this Comment On July 10, 2013, at 2:06 AM, jamesdan567 wrote:

    The article provides no new information or relevant observations. Comparisons between two different people in two different businesses are irrelevant. Shallow comments about business prospects wouldn't impress my 5 year old.

  • Report this Comment On July 10, 2013, at 3:01 AM, QQ007 wrote:

    That's 90 seconds of my life that I won't get back. I'm sorry Rick, but I agree with the above comments. The only thing Musk & Ellison have in common is that Tesla is taking Oracle's place in the Nasdaq 100. I guess the ideas were short when he was trying to think of something interesting to write about Tesla.

  • Report this Comment On July 10, 2013, at 7:00 AM, hueminh2006 wrote:

    This Rick suck comment on SIRI to be sold when it was under $1 now above $3. He is not good writer and lack off knowledge.

  • Report this Comment On July 10, 2013, at 5:51 PM, colleran wrote:

    I would watch out, Elon might call you out for comparing him to Ellison.

  • Report this Comment On July 11, 2013, at 4:45 PM, TMFBreakerRick wrote:

    Comparing Elon Musk to Jobs or even Tony Stark may make more sense than Ellison, but the point here is that Tesla's replacing Oracle in the Nasdaq 100.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2528886, ~/Articles/ArticleHandler.aspx, 9/25/2016 3:32:01 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
TSLA $207.45 Up +1.02 +0.49%
Tesla Motors CAPS Rating: **
ORCL $39.23 Down -0.28 -0.71%
Oracle CAPS Rating: ****