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The king of cryptocurrency, Bitcoin, skyrocketed from $998 at the start of 2017 to an all-time high of $20,089 in December of that year. Now, more than two years later, former hedge fund manager and Wall Street legend Michael Novogratz says he sees a similar script unfolding for electric car company Tesla.
Novogratz, the founder of crypto investment firm Galaxy Digital, took to Twitter to share his thoughts on the performance of Tesla’s stock.
#TSLA starting to feel like $BTC in 2017…. a mania…
— Michael Novogratz (@novogratz) January 22, 2020
After a meteoric month, the market cap of Elon Musk’s electric car company now stands at an astronomical $101.8 billion, according to Yahoo Finance. Tesla is now the most valuable car company in the US, eclipsing the combined valuations of General Motors ($49 billion) and Ford ($35 billion).
But a number of short-sellers aren’t giving up their positions quite yet, pointing to the fact that Tesla sold a mere 367,500 units in 2019 compared to Ford’s 2.41 million and GM’s 2.9 million.
Business Insider, citing data from S3 Partners, says short-sellers betting against Tesla have lost $3.3 billion year-to-date. But Tom Thornton of Hedge Fund Telemetry says the stock is moving too far too fast.
“The fundamentals in my view just don’t support [the price]. This crazy stock continues to amaze me.”
As of press time, Tesla (TSLA) is trading at $564.82, up 215% in the past seven months.
Featured Image: Shutterstock/Mykhailo Matviichuk