Is The Tesla-Bitcoin Bromance Over? Morgan Stanley Analyst Sees Correlation Plummeting After EV Giant's Earnings Miss
Portfolio Pulse from Anan Ashraf
Morgan Stanley analyst Adam Jonas highlighted the declining correlation between Tesla (TSLA) and Bitcoin (BTC) since Tesla's Q3 earnings miss. Historically, both assets showed a positive correlation as risk appetite indicators, but this has shifted to -0.59 since September. Tesla's Q3 earnings and 2024 outlook disappointed investors, contributing to a 28% year-to-date decline in its stock price, while Bitcoin surged 64%. Tesla, holding 10,500 Bitcoin, faces challenges including reduced EV demand, competition, and a potential GAAP EBIT loss.
March 12, 2024 | 5:58 am
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POSITIVE IMPACT
Despite Tesla's stock decline, Bitcoin has surged 64% year-to-date. Tesla's significant Bitcoin holdings position it among the largest Bitcoin-holding public companies.
Bitcoin's performance is inversely related to Tesla's recent stock performance, with a significant year-to-date increase. Tesla's large Bitcoin holdings highlight its exposure to the cryptocurrency market, potentially benefiting from Bitcoin's positive performance despite its own stock challenges.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
Tesla's Q3 earnings miss and negative outlook for 2024 have contributed to a 28% decline in its stock price year-to-date. The company faces challenges such as reduced EV demand and competition, potentially leading to a GAAP EBIT loss.
Tesla's disappointing Q3 earnings and negative outlook for 2024 have directly impacted investor sentiment, leading to a significant decline in its stock price. The company's challenges, including reduced EV demand and increased competition, further exacerbate the situation, making a negative short-term impact on TSLA stock likely.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100