In an amusing twist of fate, two very unrelated industries are competing against each other for the best performing asset of 2020’s prize. In one corner, the world’s first cryptocurrency, Bitcoin, stands at the ready. Within the crypto investment space, Bitcoin has managed to gain 30% in value since January this year. During this month, February, Bitcoin has been crossing the $10,000 mark in terms of price on several occasions. Just as it seems that Bitcoin is starting to stabilize, a new contender for the best asset of 2020 comes in: And it’s none other than the electric automaker, Tesla.
Tesla Steps Into The Ring
Tesla’s stocks have borne witness to an incredible surge in value. On the 31st of December, 2019, Tesla’s stock price clocked in at just $418. Now, however, the company managed to do more than double that figure in just under two months. Larry Cermak, a crypto researcher, pointed it out a few days ago via twitter, quite frankly expressing that Tesla stock is going nuts. If you are interested you can buy Tesla stocks here.
Somewhat ironically, one of the more volatile forms of mainstream crypto out there, the Bitcoin, has started to stabilize. The market has been touching up and down the $9,000-$15,000 range for quite some time, which is actually considered relatively stable for Bitcoin.
The Analytical Good Word
A significant contributor to Tesla’s rampant rise in stock value has been attributed to Toni Sacconaghi, an analyst at Berstein. Sacconagho nearly doubled his price target for Tesla, citing the fact that he couldn’t see any form of negative catalyst for the stock that wasn’t particularly expensive to deal with.
Sacconaghi further believes that the addressable market for Tesla will experience tremendous and sustainable growth when viewed long-term. He predicted an increase clocking in at a 30-fold rise when he predicted the next 20 years. The electric car company itself has been seen in a very positive light as of late, due to the image it brings up of sustainable and green forms of transport.
Warnings Seemingly Ignored
However, Sacconaghi isn’t recommending the investment of Tesla at this time, which apparently fell on deaf ears. As it stands now, the Bernstein analyst is convinced that Tesla’s stocks will behave in line with the broader market, with a variance of maybe 15%. He predicts this will happen for the next year or so.
Bitcoin has seen a similar improvement as well, but not in terms of the total price. The coin’s relative stability as of late seemed to have started to rise, which is excellent in and of itself. At year’s end, it’ll be interesting to see which one is valued more.