Tesla plunges 20%, calling it "Bitcoin in the automotive sector"

What can you buy in 2020 to make your pots overflow? What will buy you in 2020 make you lose? The answer can be "Tesla". Tesla's stock has recently risen continuously, 700 US dollars, 800 US dollars, 900 US dollars, nearly 1,000 US dollars … and then sharply fell to 900 US dollars, 800 US dollars, a single day plunge of up to 20%. ? At least for Bitcoin, this situation is not impossible. Bitcoin has repeatedly staged a "disaster" that plunged more than 20% in a single day.

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After entering February, Tesla's stock has skyrocketed. After Monday (February 3) surged 20%, Tesla's stock price rose another nearly 14% on Tuesday (February 4). Dust surpassed several traditional auto industry giants with a market value of nearly US $ 160 billion and became the world's second largest auto company (behind Toyota).

Tesla in the automotive field is like Bitcoin in the currency field. In the early stages, Tesla's model was not favored by the automotive industry. Although Tesla has brought unprecedented innovation to the automotive industry in terms of sales and production models, Tesla is more regarded as an " "Heterogeneous", which is very similar to Bitcoin.

Tesla's similarity to Bitcoin is now one more thing-price. Since October 1, 2019, Tesla's stock price has risen from 230 US dollars to a maximum of 960 US dollars. Of which, on February 1, Tesla's stock price was around 640 US dollars, an increase of more than 50% on the 5th. Since the beginning of the new year, Tesla's stock price has risen from $ 430 to $ 650. Its 51% gain so far this year has surpassed Bitcoin, and Bitcoin surged from $ 7,202 to $ 9,404 in the same period, a 30% increase.

Not only are the two similar in terms of gains, but even plunges are the same. As of press time, Tesla's stock has fallen more than 17%, with a maximum of more than 20%.

In fact, before February 1, Tesla stocks started to skyrocket, Mike Novogratz, chief executive of Wall Street fund, Galaxy Digital, compared Bitcoin with Tesla.

The former Goldman Sachs partner and hedge fund manager said in a recent interview with Bloomberg that Tesla and Bitcoin both represent revolutionary technologies that can change the world, so it is not surprising that they are surrounded by speculative bubbles.

Novogratz acknowledged that he made a mistake in shorting Tesla.

"When I said," Don't short Elon Musk "and" Tesla is like Bitcoin, "I violated my rules.

However, according to him, the current valuation of the electric car company may not be reasonable. He also acknowledged that as Tesla changed the world's view, stock prices may continue to soar, fueling the bubble. As for gold and bitcoin, Novogratz is involved.

"I still love gold. I still like Bitcoin because there is too much liquidity around us and we are depreciating our currency over time …

The Bitcoin bubble started in 17 years and is now an asset. This is a weapon in people's portfolio. It is a kind of gold. We call it digital gold, and it's pushing prices higher throughout the system so that more and more people can buy it, so it's trading much better. " Novogratz said he is waiting for a pullback to get rid of short positions. Although he is a loyal supporter of Tesla, he believes that Tesla's stock will be revised because it "will not land on the moon as an asset."

It now appears that Novogratz is indeed saying that Tesla stock has pulled back sharply today. But like Bitcoin, Tesla valuations may soon be on the uptrend again.