Tesla is the only top tech stock to outperform Bitcoin in the last 5 years
In recent years, Bitcoin (BTC) has ranked among the top asset classes for both traditional and crypto investment sectors. However, the cryptocurrency’s price correction has weakened its position after being overtaken by electric car maker Tesla (NASDAQ: TSLA ) in terms of returns.
In fact, Bitcoin has recorded a negative return on investment (ROI) over the past five years compared to Tesla at -5.86%. Overall, the EV maker has outperformed its flagship cryptocurrency over the past year and year-on-year with gains of 24.23% and 7.53% respectively; data obtained from Finbold’s Bitcoin ROI tool on July 29 indicates.
Furthermore, despite Bitcoin’s fall in value, the cryptocurrency has maintained superior returns compared to other top tech companies over the five years. For example, Bitcoin has a 355.22% higher return than Amazon (NASDAQ: AMZN ), 321.97% more than Google, while the asset outperformed Microsoft (NASDAQ: MSFT ) with a return of 182.65%. In addition, Bitcoin has also dwarfed Apple (NASDAQ: AAPL ) by 166.76%.
Specifically, the Bitcoin ROI tool compares BTC’s return on investment to traditional assets. The percentage values highlight how the investment in the cryptocurrency outperforms other financial support over a specific period.
Bitcoin Follows Tesla After Massive Selloff
Tesla’s ability to emerge as the only top traditional asset to beat Bitcoin in returns can be attributed to the cryptocurrency’s rocky 2022.
It is worth mentioning that Bitcoin recorded its worst quarterly returns in the second quarter at -56% as the market experienced a massive selloff. The crypto has also lost its value by nearly 70% from the nearly $68,000 all-time high recorded last November.
Elsewhere, Tesla has emerged among the best-performing stocks driven by factors such as the increased shift toward electric vehicles as more jurisdictions push to eliminate carbon emissions.
The company’s big rally was initiated during the pandemic in line with the general tech sector and continues to benefit from factors such as skyrocketing gas prices. For example, despite bearish market conditions, Tesla’s second quarter revenue growth and Annual change was +42% in 2022.
Furthermore, due to the popularity of the EV giant, a recent study also found that Tesla is Europe’s most Googled stock.
Interestingly, due to Bitcoin’s ability to act as a store of value, Tesla invested in the asset during the 2021 bull market and eventually allowed customers to buy electric cars using the crypto before reversing the decision citing BTC’s carbon footprint.
However, the company recently revealed that it had sold $936 million worth of Bitcoin, or 75% of its holdings, during the second quarter.
Bitcoin’s superiority over traditional assets
Overall, Bitcoin’s high returns compared to most traditional asset classes highlight the cryptocurrency’s ability to offer quick profits. In particular, returns remain higher despite stocks having been around for decades.
It is worth mentioning that in recent months, Bitcoin has shown a high correlation with the stock market amid a high inflation environment characterized by interest rate increases. However, the volatility has affected both Bitcoin and traditional assets equally.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
