BTC and securities of Elon Musk’s company first appeared on trading floors in July 2010. Which of the assets to consider for buying and the price of which may collapse the day after tomorrow?
Elon Max’s company Tesla in the crypto community began to be called the bitcoin of the stock market. The reason for this lies in the explosive rise in value. The electric car maker was first listed on the stock exchange in July 2010 at a price of $ 19.2. In the same month, the first cryptocurrency appeared on the trading platform, then it cost about 8 cents.
To date, both assets have risen significantly. Tesla shares are currently trading at $ 1,500, up 7,700% after listing. Bitcoin value over the same period increased by 11.5 million and now amounts to $ 9,200.
But this year, Musk’s securities have performed better than the main digital coin. Since the beginning of the year, its rate has increased by only 27%. At the same time, Tesla stock quotes showed an increase of 275%. We learned from experts whether it is worth buying Tesla and BTC shares now or, conversely, playing downgrades and which of the assets has more potential.
Tesla
https://s0.rbk.ru/v6_top_pics/resized/945xH/media/img/0/80/755952608848800.png” width=”392″ height=”196″ />Tesla’s stock price fell to $ 350 in March, then went into a growth phase and set a new all-time high of $ 1,790 in July. It is definitely not worth buying securities after such an increase, since a correction to $ 1100-1200 is possible. What is happening now is reminiscent of the rise in the Bitcoin exchange rate that happened in 2019. Then the coin from February to June rose from $ 3200 to $ 14,000, after which it fell to $ 6700 by December.
Tesla’s stock movement is similar to the Bitcoin rally in 2019. The immediate target for the fall is at $ 1200. And even when it reaches $ 1200, the stock can then adjust to $ 1100. Those who bought at the top will exit the longs so as not to lose, which will strengthen the downward movement.
The American stock market is monstrously overheated, stock valuation has come off the real indicators of companies, as indicated by many indicators. Now investing in American stocks is like a casino – the bubble will burst sooner or later, and only the timing remains the biggest mystery. Tesla stock is not worth buying or shorting – it has nothing to do with investing.
Fundamentals say Tesla is heavily overpriced and the stock is trading at a huge premium. At the same time, the company is actively developing, interest in electric vehicles is growing strongly, in particular in Asia – this is clearly taken into account by investors in their assessments. But one way or another, quotes of securities may collapse sharply if the report, which is released on July 22, will contain poor indicators.
The lesson the Tesla story presents to investors is not to be short. Now the market has a lot of free money, the market looks unpredictable, and earlier it severely punished those who did it. However, buying stocks is also hardly worth it.
Tesla predicts very large cash flow in the 20-30 year interval. Investors believe that the company will live for decades, bringing in substantial profits, but, obviously, this assumption has many risks not materialized.
To be short, when there is unlimited liquidity from the Central Bank in the markets, this is an occupation that has not statistically proven to be effective over the past 12 years since the Fed’s monetary frenzy began.
Bitcoin
https://s0.rbk.ru/v6_top_pics/resized/945xH/media/img/5/49/755952610538495.png
