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Summary
- Tesla’s stock has delivered an impressive return of over 50 per cent in the past five months.
- The Company has achieved several significant milestones over the recent months.
- The EV maker has recently begun accepting payments in Bitcoin in exchange for its products.
The last five months have been an eventful period for Elon Musk’s Tesla Inc., which has established its position as a leading player in the electric vehicle (EV) market. Tesla’s share price has grown remarkably by over 52 per cent over the last five months, with the Company experiencing some of the greatest breakthroughs since its inception.
While the Company’s shares benefitted from the exponential surge in technology stocks seen during the coronavirus pandemic, its rapid growth has been supported by general euphoria around EV stocks besides the tightening of emissions regulations worldwide.
Also Read: Tesla enters the US energy economy; building Mega battery for Texas electric grid
Let us quickly gaze through the three substantial milestones achieved by the EV maker over the last five months:
Impressive Growth in Market Cap
Tesla’s market capitalisation crossed USD 800 billion for the first time on 8 January 2021, making CEO Elon Musk the world’s richest person. The Company inched closer to the trillion-dollar club, becoming the fifth most valuable firm of Wall Street, ahead of Facebook Inc and just behind Alphabet Inc.
The EV maker’s market cap grew significantly in 2020, with its stock price skyrocketing by over 700 per cent during the last year. Tesla short-sellers lost billions of dollars on the EV maker than any other firm in 2020, with bears getting severely scorched by its stock price increase to new highs.
Currently, the Company’s market cap stands at USD 614.68 billion (as of 25 March 2021), significantly below its January 2020 highs. With investors concerned over a potential surge in interest rates and dumping high-valuation stocks, the market cap has experienced a substantial fall.
Massive Investment in Cryptocurrency
Early in February 2021, Tesla bought USD 1.5 billion in bitcoin, following a rally in 2020 when the price of the beloved cryptocurrency more than quadrupled. The Company stated that it purchased the crypto asset for more flexibility to further diversify and bump up returns on its cash.
The Company’s decision marked the biggest investment in magic internet money by a mainstream entity so far. Bitcoin prices surged to new highs following Tesla’s announcement, reaching USD 44,220 after a rise of 17 per cent on 8 February 2021.
The investment by this big cheese is expected to drive other firms’ interest in the buoyant cryptocurrency market. Besides, Bitcoin is likely to become more mainstream with several countries eyeing to regulate the market.
Acceptance of Bitcoin as Mode of Payment
Tesla has recently started accepting the digital currency, Bitcoin, as an alternate mode of payment. The Company becomes the first major automobile maker to begin accepting payments in cryptocurrency in exchange for its products. It means you can now buy a Tesla with Bitcoin!
Initially, buying a Tesla with cryptocurrency will only be possible in the US. Subsequently, the Company is expected to bring the capability to other countries like the United Kingdom, Canada and more. The Company is only using open source and internal software that runs Bitcoin nodes directly. The cryptocurrency paid to the EV maker will not be converted to fiat currency, rather retained as Bitcoin.
Must Read: Elon Musk Says Tesla May Be Shut Down If Its Cars Spied In China
