Dubai, United Arab Emirates: Tesla and Bitcoin prices have had a strong rally, making it one of the best-performing assets in 2020. Tesla joined the prestigious Standard & Poor’s 500 stock index on December 21 after posting five consecutive quarters of profit. $TSLA surpassed Facebook regarding market value, becoming the fifth most valuable company in the S&P 500.
The recent Bitcoin rally boosted after the US-based online payments company PayPal allowed its customers to use virtual currency on its network. During the last week, Bitcoin dropped more than 10% following the bearish comments from the European Central Bank President Christine Lagarde: Bitcoin is a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity.”
The cryptocurrency rose more than 300% in 2020 and rallied by 50% in December alone. On Tuesday, the BTC closed slightly lower after the Treasury secretary nominee and former Federal Reserve chair Janet Yellen said that cryptocurrencies are being used “mainly for illicit financing.”
Tesla reported its fifth consecutive quarterly profit on October 22, 2020, with revenue of US$8.8 billion. The automaker delivered 139,300 vehicles in this quarter, beating the company’s previous record of 112,000 vehicle deliveries in the fourth quarter of 2019. The company will release its Q4 financial results on Jan.27th.
Tesla shares rallied more than 700% in 2020. Technically the stock overall momentum remained bullish, but during the last week, the stock fell around 6% after the stock showed some weakness in the upside run. On Tuesday, the stock closed 2.2% higher after the automaker started delivering first Shanghai-made Model Y crossovers in China.
According to Gulf Brokers, Bitcoin may give higher returns while it is an incredibly speculative and highly unpredictable, so it’s better to diversify with more secure assets. Tesla has acquired a substantial market share in the electric vehicle market. The company makes good on its promise to keep ramping up deliveries. Production at the new Gigafactory in Shanghai should help boost future growth. Tesla is a value-based asset; yet, as a corporate share, it is still volatile kind of instrument and investors should consider the risks of losing their investments.
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