Since September, the historically positive correlation between Tesla’s (NASDAQ:TSLA) share price and Bitcoin (BTC-USD) has broken down, according to a Morgan Stanley Research report.
Yesterday Bitcoin (BTC-USD) reached $64.32 a share. Currently, it is at $63. Year-to-date, the cryptocurrency is up 81.48%.
On the other hand, Tesla (TSLA) reached its all-time high on Nov. 4, 2021, reaching $409.97. The stock is currently at $178.19 a share, down 28.29% year-to-date.
Since 2000, Bitcoin (BTC-USD) and Tesla (TSLA) exhibited a correlation typically under 0.5, but since September, the correlation has been -0.59, Analyst Adam Jonas wrote.
“We believe the correlation began to break-down around the time of disappointing third quarter 2023 results, impacted further by the disappointing fiscal year 2024 outlook for ‘notably lower’ sales growth,” the report said.
Negative sentiment around electric vehicles fundamentals and positioning have affected the Tesla stock (TSLA) since late last year.
“Tesla’s decelerating EV business and lower margin trajectory has coincided with the AI theme achieving even greater ‘escape velocity’ in the market,” Jonas said. “Portfolios have had to make room for the continued surge in other terra-cap AI names, which may have served to marginalize Tesla shares at the moment.”
More on Bitcoin USD, Tesla, etc.
- Digital Currency And Gold As Speculative Warnings
- Bitcoin Rockets To All-Time High Ahead Of Halving Event: Will It Hit $100,000?
- Tesla: Don't Let The Near-Term Challenges Dictate The Future
- Crypto funds tally record weekly inflows of $2.7B - report
- Only two of the Mag 7 names have outperformed the S&P 500 since January - RBC Capital Markets
