Tuesday, July 27, 2021

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    Tesla misses the ‘party’ of the Nasdaq with the shadow of the accounting effect of bitcoin

    On Thursday, Tesla’s shares closed in the red, down 2.78%, and returns has lost everything gained on Monday, when it managed to revalue more than 4%. The electric vehicle maker seems to be following a trend in the stock market that it prevents it from rebounding, maintaining its annual losses, and leaves it out of the ‘party’ of the Nasdaq, which brings together the most important technology companies on Wall Street and accumulates all-time highs since January.

    Tesla fails to keep up with index companies, such as Modern or Alphabet, which achieve revaluations up to 148% so far this year, while the first is left at 7.8%. The firm founded by Elon Musk faces the shadow of bitcoin, which loses nearly double its value since its April highs, while hoping to content the market with its results.

    On July 26, the company presents its accounts for the second quarter, in which the impact of the fall of bitcoin on its accounts will be known. Tesla bought bitcoins worth of 1,500 million dollars for its treasury, an investment that is now worth just over 1,350 million, according to the website bitcointreasuries.net, as a result of the collapse of cryptocurrencies that have lost half of their maximum value, after the rally at the beginning of the year.


    The move initially encouraged speculation about the purchase of bitcoin by other companies, but they barely copied it. Along the way, Tesla has sold a portion of the initial purchase and Musk has become a critic of the most widely used cryptocurrency citing its high energy consumption.

    Despite folding candles around bitcoin, the market punished the decision to bet on cryptocurrencies and tesla’s share price fails to go back the year with more than 36,000 million euros less in market capitalization. Despite the notable rebound in June, more than 8.7%, so far in July it has already dropped almost 5%. Thus, its trend in the stock market marks the opposite path to the Nasdaq, which on Monday reached its last all-time high at 14,733 points.

    Although the uncertainty in the market due to high inflation drags the technology index, in July it trades in the red although with minimal losses, in 2021 it has not stopped accumulating records and its upward trend is clear. Thus, its annual advance rises to 12.4% against Tesla’s losses. The difference is also noticeable if we look at the Nasdaq 100, the index that collects the 100 most important securities in the technology sector, which achieves a revaluation of more than 14%. The selective ‘tech’ is led by Moderna, Alphabet or Nvidia, while Tesla is at the tail end next to the Chinese technologies, in the midst of the repression of their country.

    But bitcoin is not the only ballast of the American listed company. Tesla too remains awaiting trial for the purchase of SolarCity for 2,600 million dollars in 2016. The plaintiffs claim it was a covert bailout of what was then the largest solar panel installer in the country, founded by Musk’s cousins and of which he was the largest investor and president and accuse him of putting your interests first to those of the company.

    However, Tesla’s losses could moderate and even reverse in just over a week, when the company presents its results. Goldman Sachs expects its quarterly profit to exceed expectations of the market thanks to the increase in sales and its higher prices, although it also warned about the lack of chips in the industry, which could reduce its production.

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