Tesla Nukes Altcoin Market, Elon Musk Does Damage Control
The crypto market struggles due to a wide variety of macroeconomic factors. The altcoins market in particular faced a major crisis. Ethereum fell by 2% in the last 24 hours and is trading at $1281. Meanwhile, Cardano and Solana fell by 3% and 5% respectively. The Tesla earnings report was an important reason for the poor performance of the altcoins market.
Tesla missed its expected earnings for the third quarter and the company’s stock plummeted as a result. In the after-market, $TSLA is down by 6.25%. Tesla CEO Elon Musk informed investors that despite strong demand in the fourth quarter, the company will miss its vehicle delivery target in 2o23.
Tesla was expected to earn over $22 billion in the third quarter. However, the company revealed that its third-quarter revenue was $21.45 billion. Tesla’s gross automotive margin also missed the estimates.
Why Tesla Earnings Impacts The Altcoin Market
The crypto market is strongly correlated to the broader general market. In particular, it shows a strong correlation between technology stocks and the tech-oriented NASDAQ. As major companies miss earnings estimates, the stock market plummets. As a result, the crypto market struggles too.
Moreover, Tesla’s earnings stoke fears of a slowdown in the economy and a potential recession. The World Bank believes that the economy will face a recession in 2023. Major figures such as Amazon founder Jeff Bezos believe that a recession is inevitable.
Elon Musk Does Damage Control
Despite the missed earnings report, CEO Elon Musk remains bullish on Tesla. He made a bold prediction that Tesla can be more valuable than Apple and the Saudi Aramco combined. Both Apple and Aramco are currently valued over $2 trillion. Meanwhile, Tesla is worth a little over $700 billion. However, Musk claims that he sees the path forward for the company.
In a good news for the crypto market, the earnings report revealed that the digital asset holdings remain unchanged. This means that the company is holding the remaining Bitcoin.
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