How is Tesla’s stock market performance compared to Bitcoin (BTC)?
The shares of Tesla Inc (TSLA), that is, the shares on the stock exchange of the company of Elon Musk, have been listed on Nasdaq since mid-2010, practically the same time that Bitcoin has in the market. But in terms of performance, do they diverge a lot?
Comparison between Tesla and Bitcoin shares
Over the years, 1 BTC has gone from $ 1 to almost $ 20,000 in December 2017, while now its price is around $ 9,500.
Tesla (TSLA) shares, on the other hand, started at a price close to $ 20, and reached its historic high in February 2020, with more than $ 900.
In particular, by mid-2013, Tesla’s share price had changed very little, while the price of bitcoin had already grown a lot. Therefore, the comparison for this period is very unbalanced in favor of bitcoin.
Tesla’s stock price started to rise after March 2013, with a first escalation from $ 34 to $ 158 in five months. In that short period, it gained more than 350% and the increase continued, albeit at a slower pace, for another 12 months, until it reached $ 235 in September 2014.
In total, from March 2013 to September 2014, Tesla’s share price rose by almost 600%.
In the same period, the price of bitcoin increased from $ 14 in February 2013 to $ 1,100 in December of the same year and then dropped to around $ 350 in November 2014.
In other words, BTC recorded an incredible mark of + 7,700% in about ten months and then dropped to + 2,400% in 21 months.
In January 2015, the price of bitcoin fell again, to $ 216, and remained below $ 300 until October 2015. Meanwhile, Tesla’s stock price remained almost constant below $ 250 until April 2017 .
Bitcoin, however, by April 2017 had already risen above $ 1,000, and during that time it had increased by more than 300%.
In June 2017, Tesla’s stock price rose to around $ 330, and remained there, with ups and downs, until December 2019.
In the same period, however, there was the first big speculative bubble over the price of bitcoin, which lasted about a year, which raised the price to a historic high of around $ 20,000 in December 2017.
In December 2019, the price of bitcoin fell to around $ 7,000, with a gain of 600% around the same time that Tesla’s shares registered a + 40%.
As of December 2019, Tesla’s stock price rose from about $ 320 to more than $ 900 in mid-February 2020 and then dropped to $ 813 after the mid-March crash and the subsequent increase : first, registered + 180% and then one – 9%, until now.
In the same period, the price of bitcoin first rose to a peak of around $ 10,000, also in mid-February, and then collapsed in mid-March, to rebound to the current price of around $ 9,500, then first recorded an increase of 42% and then -10% so far.
This means that from December to today, including the mid-February peaks and the mid-March 2020 crash, with subsequent recovery, the Tesla share price outperformed the bitcoin price.
However, analyzing the performance of previous years, bitcoin had been much better.
In particular, the comparison shows that, in the long run, bitcoin’s volatility is enormously greater than that of Tesla’s shares, while in the short term, Tesla’s shares sometimes outperform bitcoin.
For example, in 2019 TSLA gained about 28%, while bitcoin 89%, but during 2020 TSLA generated a 100% return, with bitcoin stagnating at 35%. Looking back in time, however, bitcoin’s price performance in the long run was far superior to TSLA.