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Bitcoin has had a stellar start to 2020, though it isn’t the year’s top-performing asset. Tesla, which trades on the NASDAQ under the ticker TSLA, is the asset that can actually lay claim to this title.
As pointed out by Quantum Economics’ Mati Greenspan, former eToro analyst, the price of Tesla — which surged higher by 12% in after-hours trading on Wednesday due to a stellar earnings report — is “ahead of BTC by a hair.” More specifically, TSLA is up 38.77% in the past 30 days while Bitcoin is up a relatively mild 30%.
Apparently not the best performing asset this year. $TSLA is ahead of $BTC by a hair. pic.twitter.com/c92wUjebYK
— Mati Greenspan (tweets are not trading advice) (@MatiGreenspan) January 29, 2020
This extremely strong performance by the electric car giant, which has brought Tesla’s valuation above that of automobile incumbents Volkswagen and Ford, per Google data, likely has many asking the following questions: What’s behind Tesla’s outperformance? Can these gains continue?
According to some, it’s entirely possible.
Related Reading: Founders of Apple, Tesla, and Twitter All United by Interest in Bitcoin, But Will This Help Adoption?
Tesla Already Up 38% In 2020, But Its Rally Might Just Be Starting
There was a time in 2019 when analysts were fearing that Tesla was on a downward spiral — the company’s Model 3 rollout was slow, debt was racking up, and Musk was in the midst of some troubles with the SEC and a civilian over tweets he made.
But Tesla has overcome all this, as exemplified by its stock, which has surged by around 240% since bottoming around $180 in June of last year. As of the time of writing this article, shares of the company are changing hands for $648, having traded 12% in the after-hours session and 5% up on Wednesday’s official session.
This latest rally higher has been attributed to a confluence of factors, namely the company’s Q4 earnings report that topped the expectations of Wall Street. Tesla reported that revenue rose to $7.4 billion, up 2% year-on-year for the quarter, and that the number of Teslas sold figure had hit 367,500.
There have also been some auxiliary factors: 1) a strong start in China, where Tesla is now producing Model 3 cars for the local population and 2) the introduction of the controversial yet eye-popping Cybertruck.
According to Ark Investment Management founder Catherine Wood, TSLA still has a lot of room to grow. So much room that Wood told CNBC that she expects for each Tesla share to be worth over $6,000 in the next five years.
Ark Investment recently laid a number of cases for a $1 trillion Bitcoin market capitalization.)
Can Bitcoin Outperform Elon Musk?
While TSLA is now outperforming Bitcoin, is there a chance that the leading cryptocurrency can outpace Musk’s brainchild?
According to some, decisively so.
A number of analysts say that Bitcoin is on the verge of entering another parabolic rally that will bring it much higher than the $20,000 all-time high set in December 2017.
Reasons backing this assertion include the upcoming block reward reduction, a strong increase in Bitcoin interest from the public, an increasing stock market, potential conflict in the Middle East, and much more.
Related Reading: Billionaire Elon Musk Lauds Bitcoin As “Quite Brilliant,” Why Isn’t Tesla Going Crypto?
Featured Image from Shutterstock
