Tesla, Inc. (TSLA) vs Bitcoin (BTC)

Correlation Analysis

Insight

Tesla's $1.5 billion Bitcoin investment in early 2021 and subsequent actions, including accepting and later suspending Bitcoin payments, established a significant correlation between Tesla's stock and Bitcoin's price movements. However, this correlation shifted over time due to various factors.

Historical Triggers
  • February 2021:Tesla announced a $1.5 billion investment in Bitcoin.
  • March 2021:Tesla began accepting Bitcoin as payment for its vehicles.
  • May 2021:Tesla ceased accepting Bitcoin payments due to environmental concerns.
  • July 2022:Tesla sold approximately 75% of its Bitcoin holdings.
  • September 2023:Morgan Stanley reported a negative correlation (-0.59) between Tesla stock and Bitcoin.
Notes
  • Tesla's Bitcoin investment initially led to a positive correlation between TSLA and BTC.
  • Environmental concerns prompted Tesla to halt Bitcoin payments, impacting both assets.
  • Subsequent sales of Bitcoin holdings by Tesla influenced the correlation dynamics.
  • Analysts observed a shift to negative correlation between TSLA and BTC post-September 2023.

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