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Tesla's Stock is Surging

Do you remember the Bitcoin surge in 2017? From January 2017 to November 2017. Bitcoin stock surged from around $885 to nearly $20,000. The 2,100% growth increase was unprecedented in such a short time period, and it left lucky investors with loaded portfolios. A similar growth pattern has occurred in TSLA over the past few days (23.61% growth over last 5 days, 45.92% growth over last month). The growth increase has been borderline parabolic over the last few months, sparking the comparison on Wall Street between Tesla and Bitcoin. However, some experts are skeptical on the comparison, mainly due to the fact that Bitcoin cratered shortly after peaking in November of 2017. They question the longevity of Tesla’s growth, and they use Bitcoin’s cratering in 2017 as their basis. These critics are misinterpreting the situation though. Bitcoin provided a service (e-currency) that had no intrinsic value; the service was merely a figment of the internet. On the other hand, Tesla manufactures a product that has real economic value. Even aside from its market value, a car has value because it is made of tangible resources that cost money.