The Year 2020: Is Tesla The New Bitcoin?

Tesla is now the most valuable carmaker on earth! This despite the company not producing or selling as many cars as General Motors, Toyota, VW, and a few other notable car makers. The only notable thing about Tesla is that it manufactures all-electric cars. And if we are honest, headed by a brilliant man, Elon Musk.

In 2020, Tesla’s stock has grown from just over $400 at the start of the year to a record high of $1,000 mid-Feb. Its growth at this point was curtailed by the COVID-19 pandemic which led to low demand and halting of production.

Read: Fed Calms Global Markets Rattled by Second Wave COVID-19 Outbreak

After a dip to under $400 in mid-March, the stock was back at it again. Note here, the stock was trading near $1,000 and crashed by more than 50% in weeks. Setting a level of volatility that only Bitcoin is bashed for having. Primarily, the reason that the SEC says has been the major concern for not issuing a Bitcoin ETF.

Also, some analysts have argued that this sort of price movement indicates price manipulation. Again, something that the only Bitcoin gets criticized for.

Read: Chart Shows Bitcoin Has Entered Whale Manipulation Zone As Mark Cuban Reveals Holding BTC

The mid-March drop set Tesla’s bottom as it began again started steadily climbing back up. At the time of writing this, it is exchanging for slightly over $1,100.

Since 2020, Tesla has not come close to being a competitor of the likes of VW or Toyota at least not on its face value but this year alone, it has pulled away. With only Toyota making a case to catch it anytime soon.

So Is Tesla A Bubble?

Well, we have seen this before and it was certainly a bubble. Bitcoin in 2017, rocketed from a value of under $1,000 to reach $20,000. This bubble however busts the following year leading to a crash to under $10,000. Since this ATH has eluded the asset.

With Tesla, this looks to be the case, while it remains unclear where the stock sets its ATH, analysts agree it is being overvalued and will come crashing back down.

The CEO himself, Elon Musk has admitted that Tesla is overvalued. As a speculator, this is the new Bitcoin, especially since Bitcoin’s volatility seems to have disappeared in recent months. But as a long time investor, stay away.

Read: Bitcoin Volatility Hits 8 Month Low, Storm’s Coming

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Author: Christine Ann

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