Long Bitcoin And Short Tesla? Here's Why Elon Musk 'Essentially' Made That Case

Benzinga2021-02-19

Tesla Inc made some big headlines earlier this month when the company announced it invested .5 billion in Bitcoin. On Thursday, DataTrek Research co-founder Nicholas Colas said the Bitcoin investment ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

AJ1977
2021-02-22
AJ1977
Short Tesla! Leave me a comment pls
elow
2021-02-20
elow
I’m long both actually!!

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2112989142?lang=en_US&edition=fundamental","thumbnail":"https://static.tigerbbs.com/e43545db21100002fd66c071b1fd2882","is_english":true,"pubTime":"2021-02-19 01:17","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2112989142","market":"us","top_or_hot":-1,"title":"Long Bitcoin And Short Tesla? Here's Why Elon Musk 'Essentially' Made That Case","media":"Benzinga","content":"<div>\n<p>Tesla Inc made some big headlines earlier this month when the company announced it invested .5 billion in Bitcoin. On Thursday, DataTrek Research co-founder Nicholas Colas said the Bitcoin investment ...</p>\n\n<a href=\"https://finance.yahoo.com/news/long-bitcoin-short-tesla-heres-171727768.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Long Bitcoin And Short Tesla? Here's Why Elon Musk 'Essentially' Made That Case</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nLong Bitcoin And Short Tesla? Here's Why Elon Musk 'Essentially' Made That Case\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-02-19 01:17 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/long-bitcoin-short-tesla-heres-171727768.html><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Tesla Inc made some big headlines earlier this month when the company announced it invested .5 billion in Bitcoin. On Thursday, DataTrek Research co-founder Nicholas Colas said the Bitcoin investment ...</p>\n\n<a href=\"https://finance.yahoo.com/news/long-bitcoin-short-tesla-heres-171727768.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":null,"symbol_name":null,"start_time":0,"source_url":"https://finance.yahoo.com/news/long-bitcoin-short-tesla-heres-171727768.html","article_id":"2112989142","we_media_id":null,"thumbnails":["https://static.tigerbbs.com/e43545db21100002fd66c071b1fd2882"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2112989142","pubTimestamp":1613668647,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Tesla Inc made some big headlines earlier this month when the company announced it invested .5 billi","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{},"translate_title":"做多比特币，做空特斯拉？这就是为什么埃隆·马斯克“基本上”提出了这一观点","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TSLA":0.9},"content_text":"Tesla Inc made some big headlines earlier this month when the company announced it invested .5 billion in Bitcoin. On Thursday, DataTrek Research co-founder Nicholas Colas said the Bitcoin investment might not be good news for Tesla investors.\nColas examined Elon Musk’s decision to invest in Bitcoin from three angles.\nFirst, he looked at the opportunity cost of devoting $1.5 billion of precious cash to Bitcoin rather than investing in Tesla’s costly global expansion.\n“If TSLA’s valuation pre-[bitcoin] purchase was based on the promise of widespread EV adoption, then does it possibly deserve a lower valuation now because it’s just signaled that the reinvestment opportunities in this industry are potentially lower?” Colas said.\nRelated Link: 5 Things To Consider When Choosing A Cryptocurrency Exchange \nBitcoin Up, Tesla Down: Tesla shares are already down 9.2% in less than two weeks since the Bitcoin stake was announced despite the fact that the bitcoin investment has already turned a significant profit.\nThe second reason Colas said Tesla’s bitcoin investment is a head-scratcher is that conglomerates tend to be undervalued in the market. Underperforming businesses within a conglomerate drag down the average valuation of the conglomerate because cash flow from the successful businesses ends up being used to support the lagging ones.\nColas said Tesla buying Bitcoin adds no value to Tesla because investors could easily buy a two-security portfolio of Tesla and bitcoin before the investment.\nMarketing Investment? However, despite the two reasons Tesla investors should potentially be concerned about the Bitcoin investment, Colas said Musk may simply be investing in his brand as a tech visionary rather than implying anything negative about Tesla’s auto business. In that sense, investors can think of Tesla’s Bitcoin investment as a marketing expense that has worked like a charm given all the attention Tesla has gotten surrounding the purchase.\nIn conclusion, Colas said he has “no problem” with Tesla’s $755 billion valuation, but the fact that Musk is investing Tesla’s cash into Bitcoin rather than Tesla is telling.\n“Closing out with a crazy trade idea to consider: long [bitcoin], short TSLA. Because essentially that’s what Musk has just done,” Colas said.\nBenzinga’s Take: So far, the long bitcoin/short Tesla pair trade has worked like a charm. Since Tesla’s bitcoin investment was announced, Tesla shares are down 9.1% while the Grayscale Bitcoin Trust (OTC: GBTC) is up 13.8%.\nLatest Ratings for TSLA\n\n\n\nDate\nFirm\nAction\nFrom\nTo\n\n\n\n\nFeb 2021\nMorgan Stanley\nMaintains\n\nOverweight\n\n\nFeb 2021\nPiper Sandler\nMaintains\n\nOverweight\n\n\nJan 2021\nDeutsche Bank\nMaintains\n\nBuy","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":360251923,"gmtCreate":1613947693462,"gmtModify":1704886005342,"author":{"id":"3574411684600657","authorId":"3574411684600657","name":"AJ1977","avatar":"https://static.tigerbbs.com/aa526fc2ee7ebbfedc30edc637c7981f","vip":1,"crmLevel":3,"crmLevelSwitch":0,"authorIdStr":"3574411684600657","idStr":"3574411684600657"},"htmlText":"Short Tesla! Leave me a comment pls","listText":"Short Tesla! Leave me a comment pls","text":"Short Tesla! Leave me a comment pls","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/360251923","repostId":2112989142,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":360012276,"gmtCreate":1613795030795,"gmtModify":1704885130656,"author":{"id":"3572253999814129","authorId":"3572253999814129","name":"elow","avatar":"https://static.tigerbbs.com/f5e633b8edfba880422f108f701c911f","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3572253999814129","idStr":"3572253999814129"},"htmlText":"I’m long both actually!!","listText":"I’m long both actually!!","text":"I’m long both actually!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/360012276","repostId":2112989142,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":7,"commentSize":2,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2112989142"}