Key Takeaways
Bitcoinsprice rally hastaken a pausebut tech darling Tesla has also underwhelmed Wall Street with its first quarter results.The multi-year drop in Tesla revenue followed the ambitious announcement by the carmaker to roll out the next generation of affordable EVs. The development pulledTeslasstock price upbutit is still unmatched to Bitcoin returns.
Meanwhile, Bitcoin has also outpaced Google and Microsoft in the last year.
Teslas financial health has shown signs of strain in its first quarter report. The car makersfirst-quarter earnings for 2024 reported a 9% drop in sales and a 48% decline in year-on-year adjusted profit. In response, the Elon Musk-led company has said that a plan for more affordable models is in queue for 2024.
Thecompanysshare price surged by at least 12% following the announcement. At the same time, Bitcoin price in the post-halving week has slowed down. On April 25, BTC was down around 5%. Despite this, the Bitcoin return against Tesla stocks is unmatched.
Thismeans thatTeslais seeing a setback in its core automotive business while making significant strides as a Bitcoin investor.The company is currently the third-largest public holder of Bitcoin, with a total of 9,720 BTC,accordingto Bitcoin Treasuries.The investment has been a relatively brightspotasTSLAhasa 35% YTD drop.
Since reporting its Bitcoin holdings in early 2021, Tesla benefitted from a Bitcoin price rise of around 64%. Teslas stock price has decreased by 43% in USD terms during the same period.
The relative performance against Bitcoin is even more telling, withTeslasstock price falling by 65% compared to Bitcoin.
Bitcoinsperformance, particularly in comparison to company returns, is notable.
In one year, betweenGoogle, Microsoft, Tesla, and Nvidia, only the AI chipmaker has outperformed Bitcoin.In the category,Google registered a 47% gainwhileBitcoin gained 124%.Microsoft gained close to 40%whileTeslas gains were worst in the category at 2%.
Outside the tech universe, thestock of mining company Marathon Digital Holdings has underperformed to Bitcoin by at least 28% since 2021. Coinbase Global stocks against Bitcoin are down 68%.
Stocks of Canada-based Hut 8 Mining Corp are down 41% against Bitcoin. Meanwhile, Bitcoin is witnessing occasional volatility as April concludes.
Recently,CoinSharesreported that Bitcoin experienced an outflow of $192m, indicating more investors withdrew their investments than added new funds.The report also underlined thatthe$18b trading volumeof ETPsmade up 28% of all Bitcoin trading volume.However, a monthagothe percentage was 55%.
However,Bitcoinsability to outperform major corporate entities like Tesla highlights its potential as a diversifying asset in broader investment portfolios. Especiallyover a longer term on the sidelines of geopolitical tensions.
The tale ofBitcoinversus Tesla is one of underlying strength over alongerperiod. While Tesla continues to innovate, it faces financial headwinds. Stocks of several crypto players like mining giants Marathon and Hut, along with Nasdaq-listed exchange Coinbase, have stayed behind Bitcoin in price returns.
Portfolio losses also partly subsided with investment in BTC for these companies. Therefore,Bitcoinsrise in value does show its resilience as an alternative investment asset.
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Bitcoin Price Outperforms Google, Microsoft, and Elon Musk's Tesla - CCN.com
