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18.07.2021 05:04 PM
Stocks rise, tech Tesla stocks fall. Why is that?

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The S&P 500 and Nasdaq indices have risen significantly in recent months and renewed their all-time highs. Only the Dow Jones did not manage to rise in comparison with its May 10 high, but still broke it. Also, strong growth was shown in recent months by shares of Apple and Microsoft. But not Tesla. Tesla shares continue to trade below the high of April 14 and well below the high of January 25, which is the all-time high. Bloomberg experts analyzed and calculated that the twenty-day correlation between the NASDAQ index and Tesla stock fell from 0.83 points to 0.14. Simply put, before the correlation was very high (the index is growing back and with a probability of 83% growth in Tesla shares), but now it is practically absent. Analysts are awaiting Tesla's earnings report due out on July 26th. And ahead of the release of this report, is it analyzing why tech company Tesla is no longer in demand among investors like Microsoft or Apple? Bitcoin is cited as the reason for the lack of demand for Tesla shares. Recall that Tesla invested $ 1.5 billion in bitcoin back in February, while Elon Musk was praising bitcoin left and right at that time. Probably, Tesla and Musk wanted to make several billion or tens of billions from cryptocurrency, provoking a sharp influx of investors into the network and an increase in the rate of "digital gold". However, few other tech companies have followed Tesla's lead. Investments in bitcoin, of course, increased after the actions of Tesla and the statements of Elon Musk, but in the past three months, bitcoin quotes have only been falling, and Tesla shares cannot show growth. Elon Musk's rhetoric has changed a lot since that time. Now the notorious billionaire criticizes bitcoin for its overly high transaction fees, its energy inefficiency, and its slowness. Tesla got rid of some of its crypto assets back in April, calling the move "testing the liquidity of bitcoin coins." However, even then we had serious doubts about the veracity of this statement. The fact is that Tesla allowed people to buy its electric cars with bitcoins for about a month, but very quickly closed this opportunity. Thus, the general picture suggests that Tesla wanted to integrate bitcoin into its activities and earn extra money on it, but this idea failed. Tesla could have sold a certain part of its crypto assets in the second quarter of 2021, but investors can find out about this only from the financial results report. If it turns out that Tesla was selling bitcoin in the second quarter, then both its shares and the value of bitcoin itself may decline even more.

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