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

on Feb 10, 2021
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  • Tesla also announced it will start accepting crypto payments after buying $1.5 billion in Bitcoin
  • Wedbush analyst Dan Ives said the introduction of crypto payments represents a positive sign for Tesla’s stock
  • Toyota stock price is trading over 7% higher in February as it continues its impressive bullish run

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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.

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Fundamental analysis: BTC investment ‘positive for the stock’

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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.

“The SEC just does not have a record of success against Elon Musk so I expect any effort in that direction to go, it would just be a dead end basically,” Block said.

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

“This is Tesla and Musk diving into the deep end of the pool on crypto and it’s something that’s been rumored for a while, and ultimately now this is really them putting substance behind his view. I think it’s something the Street will have a differing view of, but ultimately … this is definitely going to be viewed as a positive for the stock,” Ives said.

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

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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. 

Tesla stock daily chart (TradingView)

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

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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.  

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