Bitcoin investors are facing double disappointment from Elon Musk this January. The latest data shows that Tesla is one of the few investments that are outdoing Bitcoin in 2020. Cboe figures that are tracking $TSLA stocks against Bitcoin confirm that while BTC/USD has gained 30% since January 1, Tesla is up by over 38%.
Tesla Is On All-time Highs
While going against the expectations of many analysts and commentators, Tesla became an attraction in the stock markets this January. It has defied macro pressures to reach all-time highs of $589 on January 29.
Tesla’s earnings and revenue surpassed analyst expectations. According to poll results done by FactSet, many anticipated adjusted earnings of $1.77 per share on revenue of $7 billion. The company also reported a free cash flow of $1 billion. Furthermore, Tesla’s cash and cash equivalents balance surged by $930 million to $6.3 billion in Q4.
This progress follows the recent comments made by CEO Musk, who earlier stated that he is a massive fan of cryptos. But other reports reveal that Elon Musk now says he is “neither here nor there” on Bitcoin. He even shared his concerns about its use for illegal purposes.
The Q4 report showed that Tesla would probably rely on China and Model Y to achieve revenue growth. This strategy seems the most viable for the company even as deliveries of its higher profit margin Model S and Model X reduce.
The after-hour surge in share prices continued as Tesla hosted a conference call with investors. Everything was positive such that even potential delays in the Model 3 production in Shanghai as a result of the coronavirus outbreak did not sway investors’ enthusiasm.
While BTC price appears to feed off the current geopolitical pressures centred on China’s coronavirus outbreak, its gains have so far failed to beat Tesla.
Bitcoin Still King In The Long-Term
One commentator noted that the market capitalization of Tesla is around $120 billion compared to $170 billion of Bitcoin.
“Just to give perspectives of how small our market is,” he summarized via a Tweet.
In the long-term, Bitcoin’s ten-year performance remains undisputed, standing at almost 9,000,000%. Tesla’s rise to the current levels from about $20 in 2010 offers little competition. Musk is silent on advancing the Bitcoin cause in a way that makes him stand out from other tech industry leaders.
On the other hand, Twitter CEO Jack Dorsey has expressed his support for Bitcoin loudly. He even participated in the Lightning Torch transaction relay last year.