Tesla’s stock price (TSLA) exceeded $ 1,200 in the pre-market and reached a market capitalization of more than $ 220 billion. Now the world’s most valuable automotive company is worth 30% more than the total market cap of Bitcoin (BTC), the world’s largest and most popular cryptocurrency.
Tesla outperformed Toyota and became the highest quality automaker on the world market. Now he’s trying to establish his dominance in the industry as his shares continue to grow.
Tesla’s pre-market share price was over $ 1,200. Source: CNBC
The catalysts that raise Tesla stocks and their relationship with Bitcoin
According to Nasdaq Tesla officially hit $ 1,214 with share price up 8.5%. Analysts attribute TSLA’s upward trend to sales expectations in the second quarter.
Elon Musk, CEO of Tesla, said he was surprised by the execution of the company. He emailed the staff:
“It’s amazing how well they did, especially in such difficult times. I am so proud to work with you! “
Musk’s positive mood in the second quarter meant that analysts were optimistic about a potentially profitable quarter. Electrek, an energy-oriented publication, appreciated this Tesla could have delivered more than 90,000 cars in the second quarter.
After Tesla’s rise Wedbush analyst Dan Ives said he now expects Tesla’s stock price to reach $ 2,000 in the long term.. Ives said in a note:
“We believe that the increase in demand for Model 3 in China was greater than expected in the summer, the decrease in quarantine in the US and Europe and some potentially ‘changing’ battery developments in the US and Europe have room for Tesla stocks to continue growing. “
Other important promotions like Apple and Microsoft have kept their momentum in recent months, fueled by optimism in the US stock markets.
While Tesla and Bitcoin have no price correlation or similarity, Tesla’s rating shows two things about the main cryptocurrency.
First, Bitcoin is still in an extremely early growth phase and therefore has great potential to continue growing.. Secondly, The upward trend in equities despite clear geopolitical and macroeconomic risks could have a positive impact on wealth risk in the third quarter.
Mood similar to that of BTC in 2019
Throughout the first half of 2020, Tesla was consistently ranked as one of the shortest stocks in the U.S.. According to the Nasdaq share, this has been a very short measure so far.
The most viewed stocks on the Nasdaq Short Interest List. Source: Nasdaq
In the same way, When the price of Bitcoin rose sharply in 2019, this was mainly due to the reduction in short contracts. For example, in July 2019, BTC rose from around $ 6,000 to $ 14,000 over a period of months. It was aggressively cut to BitMEX and when BTC rose, many short contracts were signed.
Tesla shares have risen by “FOMO”, as was the case with Bitcoin in previous years. If TSLA breaks its record price, chances of discovering the price will increase if it moves in unknown territory.
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