Tesla stock crashes in 2022 more than Bitcoin and Ethereum

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With the cryptocurrency market notorious for its volatility, many traditional investors in stocks, bonds, and precious metals have shunned digital assets in 2022, especially in uncertain economic market conditions.

However, the price of one of the most publicly traded companies, electric vehicle (EV) maker Tesla (NASDAQ:TSLA), has fallen more than the value of the two largest cryptocurrencies by market capitalization in 2022, Bitcoin (BTC) and Ethereum (ETH).

Notably, Tom Dunleavy, Senior Research Analyst at Messari Crypto, highlighted on December 28 how Tesla (-72%) is now down more than ETH (-68.28%) or BTC (-64.54%) since the beginning of the year.

TSLA, BTC and ETH YTD values ​​fall YTD. Source: Tom DunleavyTesla Average Price Target

Additionally, Welts Holger Zscaepitz also took to Twitter to reveal that Tesla, with a price of around $109, is the farthest it has ever been from analysts’ average price target ($255).

Never in its history has Tesla stock been so far below its average price target for analysts.

TSLA average price target. Source: Holger Zscaepitz

Michal van de Poppe, full-time trader and CEO and Founder of Eight Global, pointed out that a relief rally is imminent and is likely someone closing the shorts and reversing the trade. Interestingly, on December 27, he noted his key areas to watch:

I would look for a knife hold on $TSLA in those areas. Likely some relief around the corner if the region between $100 and $110 holds.

TSLA drop knife. Source: Michal van de PoppeTeslas Market capitalization loss in Q4

Even though many companies have struggled during the outbreak, finbold noted that Tesla was one of the best performing stocks as investors’ attention turned to technology. As the economy struggles to gain ground in the face of lingering uncertainty, Tesla’s market capitalization has steadily fallen since the start of 2022.

Data acquired and calculated by Finbold as of December 26 indicates that in the fourth quarter of 2022, Teslas market capitalization was $388.87 billion, down 52.87% or $436.32 billion from compared to the capitalization of $825.19 billion recorded on October 1.

In the last three months of 2022, Tesla’s market value losses totaled $436.32 billion, more than the combined market capitalizations of its top 10 competitors.

In the fourth quarter of 2022, the combined market value of all competing electric vehicle manufacturers was $280.78 billion. As a result, Tesla’s loss in market value in the fourth quarter of 2022 was 55.39% greater than the sum of the losses of the ten largest rival electric vehicle manufacturers.

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