Tesla (TSLA) Surpasses Bitcoin's (BTC) Market Cap. Here's Why Bulls Should Be Worried
Electric car manufacturer Tesla has is once again worth more than $140 bln. Its shares are currently in the green, trading at $754.
For comparison, the market cap of Bitcoin (BTC) is currently sitting at $126 bln.
Tesla is not invincible
The shares of Tesla (TSLA) was hit hard by the coronavirus sell-off, plunging to its yearly low of $350 on March 18. Nevertheless, it emerged as strong by gaining more than 120 percent in a span of just one month.
That said, Bitcoin investor Tuur Demeester says that the bulls shouldn't feel overexuberant about Tesla's wild ride in April.
Even if you're a $TSLA bull, isn't a $140B market cap (higher than Bitcoin!) a bit over the top? Huge amounts of risk appear to not be discounted: low car demand, supply chain disruption, permanently low oil price, ... pic.twitter.com/TvXlmMjAWw
— Tuur Demeester (@TuurDemeester) April 20, 2020
He claims that the unfolding supply chain crisis coupled with much lower demand for cars are some "huge risks" that might put a spanner in the works for Tesla bulls.
Alex DovbnyaBitcoin and Tesla comparisons
This is not the first time that the Elon Musk-helmed company gets compared to Bitcoin.
As reported by U.Today, Tesla saw a major rally back in early February, which was compared to the crypto craze in December 2017.
Despite all the bubble talk, the company's stock has so far proven to be resilient during the COVID-19 crisis.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
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