Tesla stock price prediction for March as it endorses Bitcoin (BTC)

Shares of Tesla (NASDAQ: TSLA) are trading over 7% higher in February after attracting attention of the crypto community following the purchase of $1.5 billion in Bitcoin.

Fundamental analysis: BTC investment ‘positive for the stock’

Tesla also announced it will start accepting crypto payments, according to the carmaker’s filing with the U.S. Securities and Exchange Commission (SEC). The electric vehicle (EV) manufacturer said it bought the top cryptocurrency to ensure flexibility and maximize cash returns. 

This way, Tesla has become the first major carmaker to introduce crypto payments. 

Muddy Waters Research founder Carson Block said he doesn’t believe the U.S. government will curb Elon Musk’s plans.

Wedbush managing director Dan Ives said the introduction of crypto payments represents a positive sign for Tesla’s stock. 

Mohamed El-Erian, head economic advisor at Allianz, said the reactions to Tesla’s latest move will be different but he emphasized that Tesla sees Bitcoin as both means of payment and an investment vehicle.

Technical analysis: Pullback possible

Toyota stock price is trading over 7% higher in February as it continues its impressive bullish run. Shares have closed higher every month since October with February on the right path to continue this streak. 

Still, the valuation of Tesla shares looks very high. The price action broke below an aggressive ascending trend line while the ongoing consolidation near highs takes the form of a triangle. A bearish break may result in a deeper pullback to 38.2% Fibonacci retracement - where buyers wait to buy TSLA.

Summary

EV company Tesla said it has bought $1.5 billion of Bitcoin and that it will allow cryptocurrency payments, according to the company’s filing with the SEC.