Why Tesla Flipping Bitcoin Market Cap is Not Happening Anytime Soon
Tesla’s market value has just eclipsed that of General Motors and Ford combined but it is still a long way off beating Bitcoin.
Tesla Teases $90 Billion Market Cap
For the first time, the stock market value of Silicon Valley electric car manufacturer, Tesla, has surpassed the combined capitalizations of its two rivals.
Company stock jumped almost 5% on Wednesday, closing at a record $492.14 per share and lifting its market cap to almost $89 billion according to Reuters.
This is larger than the sum of General Motors at almost $50 billion and Ford at almost $37 billion combined.
Tesla stock has almost doubled in three months fueled by surprise third-quarter profit, higher than expected car deliveries in the fourth quarter, and progress at a new factory in China, the report added.
Chief investment strategist at MainStay Capital Management, David Kudla, cautioned;
But there are still some problematic issues out there, chief among them is what will its sustained profitability look like, and when will it start to be valued like a car company and not a tech company.
Bitcoin Taps $150 Billion
Comparatively, Bitcoin market capitalization has grown 17% this year alone as it topped $150 billion for the first time in seven weeks.
Today the world’s largest digital asset has corrected following a geopolitical driven surge over the past week. BTC market cap at the moment is around $145 billion, $57 billion higher than Tesla.
Tesla market cap will only surpass Bitcoin if the asset plunges to its crypto winter lows again below $4k. This time last year bitcoin market cap was around $65 billion – around half of what it is now.
According to Statista, Bitcoin is on a par with McDonalds and energy giants Total and BP, in terms of market cap. It is just above Bank of China and BHP Billiton. Tesla has yet to make the top one hundred list. According to Visual Capitalist, the global top five companies by market capitalization are all US tech giants with a combined cap of over $4 trillion.
Recent events have shown how quickly bitcoin market cap can expand. This year alone it has grown by $15 billion, and that is accounting for today’s price correction back to $8k.
During its 2019 peak, bitcoin market cap topped out above $230 billion and at all time high just over two years ago it was worth a staggering $335 billion. This is almost as large as Visa’s market cap in 2019.
Bitcoin has a long way to go before it reaches those heady heights again, but if geopolitical and economic tensions keep escalating it could get there sooner rather than later.
When will BTC market cap reach $200 billion again? Add your comments below.
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