Tesla Stock Outperforms Bitcoin as It Gains 10% after Impressive Earnings Report

Updated on Jan 31, 2020 at 8:27 am UTC by Teuta Franjkovic · 3 min read
Photo: Shutterstock
Photo: Shutterstock

Yesterday, Tesla stock increased by over 10% to a new record of $640. Though Bitcoin is a good performer this year, it can’t boast such growth rates.

Tesla stock is beating Bitcoin – and when we say “beating” we mean it. Bitcoin investors are surely not happy with this fact that Tesla is outperforming Bitcoin (except if they didn’t invest in Tesla as well). If we look at the exact figures starting from January 1, the Bitcoin price rose around 30% while Tesla went 38% up.

New Record – Again

Tesla stock wasn’t like this all the time. Just for the reminder, in November, when the famous Cybertruck was revealed (and smashed, but hey every PR is a good PR), Tesla stock started to drown. That exact day, November 22 it fell more than 6% to $317. However, something weird happened. Did people actually suddenly started to like it’s ‘Mad Max’ design or did the fact that SUV’s usually make around 6% of total sales, something happened. From that week on, Tesla started to ramble. At the time of writing, on Friday, at 12:24 am ET, the stock was up more than 10% to amazing $640.81 (and $644.11 in pre-market).

However, let’s come back to Bitcoin. If you have noticed (and we are sure you have), Bitcoin is also rising at an amazing pace. At the time of writing, it was rising by 0.97% to $9,408.44.

But why is that? Some say the progress came as Elon Musk commented recently that he is a big fan of crypto. Speaking on his Third Row Tesla Podcast last week, Musk defended crypto saying it is not meant to work on the dark web or be used for illicit purposes. He also added he sees crypto as an effective cash replacement.

Tesla is a Physical Company – Bitcoin Isn’t

And even though many Bitcoin fans are unhappy to see Tesla outperforming Bitcoin it was really expected. If you think rationally, Tesla is a company that can produce an actual product. Tesla is a company that can change the way of its shares just by giving quarter reports. Hell, after it said yesterday that its revenue in the fourth quarter of 2019 amounted to $7.38 billion, rising 2% compared to the same period a year earlier and topping market estimates – the stocks went crazy.

So it’s absolutely normal for Bitcoin that cannot produce quarter earnings as a physical company “not to be the best performing asset this year” as says analyst Mati Greenspan.

But, let’s not give up on Bitcoin so quickly. If you look at its 10-year performance, it’s still the best asset you could invest in. And let’s not forget, except being the best-performing asset of the last decade, it’s definitely the most attractive haven for investors looking to escape economic and geopolitical risks.

Bitcoin Still the Best Performing Asset

Let’s take a look at few examples. If we look at the year-to-date returns, if you invest in, let’s say U.S. Treasury, you would get 2% back. If you would choose to invest for example in gold, you would get back 3.4%. The same you’ve got back if you’d choose Nasdaq as your main investment.

Bitcoin, on the other hand, gives you back 26.5%. And, of course, if we look at the change in prices of stocks and compare it with the change in the price of gold – you would get two diametrically opposed curves. And it’s normal. Whenever something happens in the world (wars, epidemics…) that can shake dollar stability, investors are choosing gold. The same is with Bitcoin. Bitcoin follows almost the same curve as gold, although on a much higher level.

Bitcoin News, Cryptocurrency news, Markets, News, Stocks
Teuta Franjkovic
Author: Teuta Franjkovic

Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.

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