Elon Musk’s Tesla (TSLA) Stock is Mimicking Bitcoin’s 2017 Parabolic Move, Will It Last?
- Tesla “anxious to reach Mars before SpaceX has a chance to get there” as it jumps 118% YTD
- Despite never being profitable on an annual basis, Tesla shares are at an all-time high
One of the most astounding bull markets was of the Bitcoin that saw the digital asset surging $20,000 in 2017.
However, there is yet another stock in 2020 that is mimicking Bitcoin’s movement from 2017. And this is none other than crypto proponent Elon Musk’s Tesla.
— Elon Musk (@elonmusk) February 3, 2020
Last week the stock market succumbed to the fear over the deadly coronavirus outbreak and as it started recovering, Tesla has emerged as the winner.
“The shining star by far has been Tesla, which seems anxious to reach Mars before SpaceX has a chance to get there,” said Mati Greenspan, founder of Quantum Economics in his Tuesday newsletter.
Calling tops on parabolic moves have a 90% chance of making you look stupid.$TSLA
— Galaxy (@galaxyBTC) February 4, 2020
Larger than Ford, BMW, GM, & Harley Davidson Combined
Since October, TSLA stocks have seen a massive jump of 212%. The level of its success can be understood from the fact that Tesla’s market cap of $140 billion is now larger than BMW, General Motors, Ford, and Harley Davidson… combined.
Before its regular trading today, Tesla surged over 15%, a crypto-esque move, which came after a nearly 20% pump yesterday during regular trading. Just a week ago, Tesla shares were worth $560 and today they have jumped past $900 to $925.
Last Wednesday, the company reported earnings leading to a nice bump to the company's market value. Although Tesla’s financial situation improved in recent years it reported zero year-over-year revenue growth.
Despite never being profitable on an annual basis, Tesla shares are at an all-time high.
Deep in dept, selling less than 400,000 vehicles last year, and challenged by several competing electric car models in 2020, Tesla's stock valuation stunningly exceeds VW which sold over 10 million vehicles last year. Watch out Tesla believers. -R
— Ralph Nader (@RalphNader) January 22, 2020
“I just can’t believe this freaking stock. It’s insane,” Roth Capital analyst Craig Irwin told CNBC. “This is a big separation from those of us who like to pull out the calculators and look at reality.”
Short Seller or an Edge over the Auto Industry?
However, not all were gainers. Tesla short-sellers or traders betting that the automaker’s shares will decline. They have lost more than $8 billion since the beginning of the year.
— Hsaka (@HsakaTrades) February 4, 2020
A potential reason behind this surge could be the company expanding its edge over the auto industry.
“There’s a recognition that Tesla is in a preeminent position in terms of EV technology,” Peter Rawlinson, the chief executive officer of upstart Lucid Motors Inc., said in an interview with Bloomberg. “They’re even further ahead than has been reported, and I think the gap is widening, not closing.”
Amidst this, billionaire investor Ron Baron has a big belief in Tesla which he said has the potential to hit “at least ” $1 trillion in revenue in 10 years and then further continue to grow from there.
Getting Flashbacks of Bitcoin Bull Run in 2017
While Greenspan is wondering “just how happy the Fed and daddy Powell are to see where all their newly printed money is going,” others are getting flashbacks of the Bitcoin bull run of 2017.
— Michael Novogratz (@novogratz) February 3, 2020
In 2020, TESLA is up over 118% YTD while in comparison Bitcoin has seen only a 25% surge.
Tesla vs Bitcoin battle for market cap dominance continues (2010-2020).
— James Todaro (@JamesTodaroMD) February 3, 2020
“Hearing a Wall Street analyst calling for Tesla to go to 7K is no different than hearing euphoric Bitcoin bulls call for 100K in December 2017. People rarely learn from examples of the past. I would LOVE to see Tesla at 7K, but there's no rational reason to expect it,” wrote trader Scott Melker.
Now, what remains to be seen is how high TESLA is going and if Bitcoin is ready for its another bull run as it approaches reward halving in May.