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The latest bullish Tesla earnings call has triggered a return to risk-on sentiment in TradFi markets, and now analysts are asking – could this fuel Tesla Bitcoin supercycle?
Tesla’s stock defied gravity after the Tesla earnings call, shooting up in after-hours trading despite the company facing its most brutal revenue nosedive since 2012—a chilling 9% freefall in Q1 of 2024.
In a twist that would make a Wall Street trader double-take, the culprit behind this is none other than Elon Musk, who hinted at cheaper EVs potentially as soon as late 2024 or early 2025.
This Tesla earnings call could be the flare for risk assets and crypto, notably Bitcoin.
Risk assets are now witnessing renewed vigor, buoyed by easing tensions in the Middle East and a healthier economic climate marked by strong demand for U.S. Treasuries and a weakening DXY (US Dollar Index)
Companies like Spotify and General Motors reported encouraging earnings, contrasting Tesla’s shortfall and highlighting diversity in performance across the tech and auto industries.
Here’s how high Tesla and Bitcoin could go.
Deep Dive into Tesla Earnings Call – Bitcoin Price Interaction
Tesla is going through it at the moment. The cyber trucks, once paraded as the next big thing, are now synonymous with failure, hobbled by an accelerator pad flaw leading to a massive recall.
Also, recently, the company saw executives Drew Baglino and Rohan Patel resign amidst Tesla cutting global workforce by exceeding 10%—a decisive, albeit drastic, strategy to counterbalance financial strain.
In defiance of all this, Tesla stock is surging up +11.38% daily.
Tesla is betting big on the future, funneling a staggering $2.77 billion into capital expenditures—a bold 34% increase from last year.
This cash surge into AI infrastructure and stocking up inventory marks a high-stakes wager on securing a technological edge, even as it nudges the company into the red with negative free cash flow.
Amid whispers that Elon Musk may be spreading himself too thin across his empire, he doubled down, quelling rumors of his exit.
Musk emphasized that he barely takes days off—even Sunday afternoons, he’s working.
Broader Market Sentiments For Risk Assets Like BTC After Tesla Earnings Call
Following Tesla’s earnings call, TradFi risk assets, including Nvidia and the broader tech sector, are not just shooting for the moon—they’re aiming straight for Mars. This includes Bitcoin.
Tesla announced on Monday that none of its $711,050,000 worth of Bitcoin (BTC) was sold in the first quarter of 2024 – the seventh straight quarter of hodling it. They are the second largest corporate Bitcoin treasury holder.
Tesla is a perennial lighthouse for risk assets; they once made sport of wrecking short-sellers back in 2020 who declared risk was dead.
Now, with TSLA stock climbing despite less-than-stellar earnings, it whispers a prophecy: Tesla, tech, and Bitcoin might be gearing up for a hot summer in 2024 as TradFi return to risk on.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
