Both Tesla and Bitcoin (BTC) price has had a strong rally, making it one of the best-performing assets in 2020. Tesla joined the prestigious Standard & Poor's 500 stock index on December 21 after posting five consecutive quarters of profit. $TSLA surpassed Facebook in terms of market value, becoming the fifth most valuable company in the S&P 500.
Bitcoin climbed to a new all-time high last week. The recent Bitcoin rally boosted after the US-based online payments company PayPal allowed its customers to use the virtual currency on its network. Several major banks also exploring the possibility of allowing the issuance of virtual currencies.
TSLA and BTC fundamental outlook
Tesla reported its fifth consecutive quarterly profit on October 22, 2020, with revenue of US$8.8 billion. The automaker delivered 139,300 vehicles in this quarter, beating the company’s previous record of 112,000 vehicle deliveries in the fourth quarter of 2019. The company will release its Q4 financial results on Wednesday, Jan. 27.
During the last week, Bitcoin (BTC) dropped more than 10% following the bearish comments from the European Central Bank President Christine Lagarde. “Bitcoin is a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity,” Christine Lagarde said.
TESLA technical outlook
Tesla shares rallied more than 700% in 2020. Technically the stock overall momentum remained bullish, but during the last week, the stock fell around 6% after the stock showed some weakness in the upside run. On Tuesday, the stock closed 2.2% higher after the automaker starts delivering first Shanghai-made Model Y crossovers in China.
In the short term, the key level remains this month high $880 as a break above would increase the potential of an extension towards $1000/1050 over the coming days. On the flip side, any pullback might now be seen as a buying opportunity.
BTC technical outlook
The cryptocurrency rose more than 300% in 2020 and rallied by 50% in December alone. On Tuesday, the BTC closed slightly lower after the Treasury secretary nominee and former Federal Reserve chair Janet Yellen said that cryptocurrencies are being used "mainly for illicit financing."
In the short term if the price breaks above 38,200 which would open doors towards 40000/40400 and above that 41300 is next. On the flip side, the first immediate support can be found in 33400 and then 32,300/30,500.
According to Gulf Brokers, Bitcoin may give higher returns while it is an incredibly speculative and highly unpredictable, so it’s better to diversify with more secure assets. Tesla has acquired a substantial market share in the electric vehicle market. The company makes good on its promise to keep ramping up deliveries. In 2020, Tesla delivered 499,550 cars to customers and produced 509,737 units. In addition, production at the new Gigafactory in Shanghai should help boost future growth, as China has the biggest electric vehicle market. Tesla is a value-based asset, on the other hand, as a corporate share it is still a volatile kind of instrument and investors should take into account the risks of losing their investments.