Tesla's up move is compared to the 'largest bubble in history', with the exception of Bitcoin

Many analysts are now comparing the Tesla (TSLA) stock with the largest bubbles in recent history, but Bitcoin is the most notable exception.


Tesla stock ‘defying the laws of physics’

Tesla shares began the new year with a parabolic trend that surprised Wall Street. Elon Musk's electric car company has risen from the ashes after bankruptcy to become the second most valuable car company in the world.

It currently has a valuation of $ 164 billion, behind only Toyota 227 billion. Even more optimistic than that, some analysts guess to 1.3 trillion dollars in less than 5 years.

Follow CNN Business, Tesla's stock rally massively "appears to be defying physical laws". Because prices have increased more than 4 times since June. Even with a slight pullback this week, TSLA has now increased 75% since the beginning of the year.

We may be used to such dizzying percentages in the cryptocurrency space, but this action is not so common on the stock market.

In fact, both TSLA and BTC closed in January with a 32% increase from the beginning of the year. However, TSLA has now surpassed even Bitcoin with profit signing 35.88% YTD at the time of writing.

Tesla rises to become the record bubble

However, many analysts, including teams at Bank of America, Wedbush and Bespoke Investment Group, are predicting the success of another classic bubble called Tesla. They point to excess liquidity and "easy money-making" from central banks supplying energy to Tesla's hurricane.

The rise of the TSLA reminded them of the stock market's growth in the 1990s, surpassing most tech stocks in the dot.com bubble. In fact, Tesla has far surpassed even Homebuilders and biotechnology stocks in their heyday, with notable exceptions Yahoo and Cisco.

While TSLA may not suffer the same boom-bust fate, most analysts believe that based on previous experience of parabolic breakouts like this, Tesla will evaporate and possibly in a dramatic way. In other words, it's a bubble and the question is when will it burst?

Tesla increased by 2,519% on Tuesday

Tesla's upward move appears to be driven by Model 3's record sales in China, as well as the popularity of Cybertruck. In fact, Tesla currently has an almost exact valuation for Bitcoin's entire market capitalization.

So maybe that's why mainstream analysts don't include Bitcoin among the most majestic bubbles of modern times. This simple asset is too small to fall under the watch of the stockbrokers.

However, if Tesla's 2,519% payback since 2012 makes CNN call it a high return - then Bitcoin increase 9,000,000% in the last decade? Definitely defying the laws of physics, religion and whatever?

Moreover, if analysts think that Tesla took fewer days of trading than most technology stocks of the 1990s to reach 2,000% (over 1,500 days), Bitcoin How about 2,000% increase in 2017 after only 12 months?

TSLA may be on its way to becoming one of the biggest bubbles in the recent history of the stock market, but it still has a long way to go before Bitcoin's dizzying peak.

Thuy Trang

Bitcoin Magazine | Bitcoinist

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