Tesla effect: Swissquote shares up 4% after Switzerland leasing deal
It seems as though Elon Musk’s Midas touch extends well beyond the shares of his own companies.
Shares of Swiss online brokerage and banking firm Swissquote (SWX:SQN) traded up by 4.4% on Friday, back to near an all-time high, after the company announced that it will become a leasing provider for Tesla in Switzerland. According to Tesla-centric blog Tesmanian, Swissquote will be a “Premium Partner” of the popular electric car manufacturer. New car customers will be able to customize their Tesla on Swissquotes’s website according to a Swissquote spokesperson. Tesla customers can also choose online banking as a leasing option via Swissquote.
Swissquote shares hit a 52-week and all-time high in June and then again through mid July, hitting CHF 92.50 on July 21, in anticipation of the company reporting record results for 1H-2020. However the shares drifted back down to about CHF 70 by late October. As noted above SQN stock climbed by 4.4% after the Tesla leasing announcement Friday, and closed at CHF 88.30 – close to the July all-time high figure.
We also find it interesting, and something of a mini-trend, that a number of online brokers are looking to use their existing infrastructure (and financial licenses) like Swissquote and diversify into other areas. We recently reported exclusively here at FNG about London-based ETX Capital getting into the capital raising business, doing investment banking deals for small and mid cap publicly traded companies.