HomeCryptocurrencyBitcoin outperforms Tesla stock for the first time since 2019

Bitcoin outperforms Tesla stock for the first time since 2019


Bitcoin’s (BTC) price has finally outperformed Tesla’s (TSLA) stock over the past five years in percentage terms. The electronic vehicle manufacturer has also missed out on a potential $1.27 billion in profit after selling a big chunk of its BTC holdings in 2022.

BTC overtakes TSLA in long-term gains

Over the past five years, Bitcoin’s price has risen over 1,180%, while Tesla’s stock price has risen over 806%, according to TradingView data.

BTC&TSLA, 5-year chart. Source: TradingView

Looking at smaller time horizons, Bitcoin’s returns have outperformed TSLA over the past year, in particular. Bitcoin rose 139% while Tesla fell over 11% over the past 12 months, while year-to-date BTC is up 49% while Tesla’s stock price is down 42%.

BTC&TSLA, YTD-year chart. Source: TradingView

Such a stellar year so far for BTC has made it the world’s ninth-largest asset with a $1.3 trillion market capitalization, larger than Meta Platforms, Berkshire Hathway, Visa, or JPMorgan Chase.

In comparison, Tesla is the world’s 21st largest asset, with a $455 billion market capitalization, according to Companiesmarketcap.

World’s 10 largest assets by market capitalization. Source: Companiesmarketcap

Tesla was among the first publicly traded companies to invest in Bitcoin back in February 2021, when the company bought over $1.5 billion worth of BTC, around the $36,000 mark.

However, Tesla sold around 10% of its holdings in March 2021. Then, the company sold approximately 75% of its Bitcoin reserves in the second quarter of 2022.

Had Tesla not sold, it would have made over $1.27 billion in profit, up over 84% on its initial investment, at current price levels.

Tesla BTC Balance. Source: Arkham Intelligence

Tesla currently holds 11,509 BTC worth over $766 million with Coinbase Prime Custody, according to Arkham Intelligence.

Related: Bitcoin price breaks above $66K — Has BTC flipped bullish again?

Bitcoin ETFs are the main reason why BTC is winning

The approval of the ten United States spot Bitcoin exchange-traded funds (ETFs) was the main reason behind BTC price rising 60% so far this year, according to Andrey Stoychev, the head of prime brokerage at Nexo. He told Cointelegraph:

“U.S. spot Bitcoin ETFs’ role in elevating Bitcoin to a genuine asset class has been invaluable, with pleasing trading volumes and capital flows since launch.”

The ten Bitcoin ETFs amassed over 835,000 BTC in cumulative on-chain holdings, worth over $55.1 billion, according to Dune.

Related: New Bitcoin whales, ETFs are up only 1.6% in unrealized profit — Is the BTC bottom in?

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.