Webull's CEO Talks Tesla's Rise To $1,000, Nikola's Arrival

Benzinga recently got some insight from Anthony Denier, CEO of the commission-free trading platform Webull, to gain a better understanding of how some of the firm's 11 million clients are looking at Tesla Inc TSLA after the stock hit the $1,000 per share milestone.

Denier On Tesla's Stock: Some retail investors conduct significant research on Tesla and its stock, but there are also a lot of people jumping "on the bandwagon of stocks with momentum," Denier told Benzinga in an email.

Most of Wall Street watches CNBC, and it's reasonable to assume the same goes for retail investors looking for news on Tesla, he said — Denier believes few retail investors are familiar with uber Tesla stock bulls like Ron Baron.

Denier On Elon Musk: Investors look at Tesla CEO Elon Musk as a visionary with a business dedicated to replacing cars running on fossil fuels, the Webull CEO said.

Investors appreciate Musk for what he is: a leader looking to "solve the climate change crisis, putting a stick in the eyes of the big automakers and refusing to bow down to Wall Street's analysts or expectations."

Smoking weed on the Joe Rogan podcast is "just icing on the cake," Denier said. 

Musk does have a history of over-promising and under-delivering, he said, but investors are forgiving and offer Musk "a lot of room to move."

Musk could lose some investor confidence if Tesla shows serious problems with production and time frames, Denier said. But the recent success of the SpaceX launch "has given Tesla a residual glow and helped Tesla's image in people's eyes."

Denier On New Rival Nikola: Electric semi-truck company Nikola Corporation NKLA is a new rival in the space, but Nikola doesn't generate any revenue nor has it released a product yet, Denier said.

In fact, there remains doubt if Nikola's vehicles "can do what it says it will do."

Nikola CEO Trevor Milton might think he's on the same playing field as Musk, but Denier said this may not be the case. Nine out of 10 people on the street are likely to know who Musk is, and not one will know who Milton is, he said. 

Milton has reason to name his company after Nikola Tesla, who was one of the main forces behind alternating electrical current, the Webull CEO said — but it also "sounds like a direct shot" against Tesla.

"I think Trevor has seen Tesla's success, sees the potential in electric cars and trucks and wants to get in on the action," he said. "For investors, I think people see a chance to get in early on the next Tesla."

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Photo courtesy of Tesla.