The king of cryptocurrency, Bitcoin, skyrocketed from $998 at the start of 2017 to an all-time high of $20,089 in December of that year. Now, more than two years later, former hedge fund manager and Wall Street legend Michael Novogratz says he sees a similar script unfolding for electric car company Tesla.
Novogratz, the founder of crypto investment firm Galaxy Digital, took to Twitter to share his thoughts on the performance of Tesla’s stock.
#TSLA starting to feel like $BTC in 2017…. a mania…
— Michael Novogratz (@novogratz) January 22, 2020
After a meteoric month, the market cap of Elon Musk’s electric car company now stands at an astronomical $101.8 billion, according to Yahoo Finance. Tesla is now the most valuable car company in the US, eclipsing the combined valuations of General Motors ($49 billion) and Ford ($35 billion).
But a number of short-sellers aren’t giving up their positions quite yet, pointing to the fact that Tesla sold a mere 367,500 units in 2019 compared to Ford’s 2.41 million and GM’s 2.9 million.
Business Insider, citing data from S3 Partners, says short-sellers betting against Tesla have lost $3.3 billion year-to-date. But Tom Thornton of Hedge Fund Telemetry says the stock is moving too far too fast.
“The fundamentals in my view just don’t support [the price]. This crazy stock continues to amaze me.”
As of press time, Tesla (TSLA) is trading at $564.82, up 215% in the past seven months.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Mykhailo Matviichuk
