Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      How a dowdy database maker became an investor darling

      18 June 2025

      Who let the dogs order? Sixty60 now delivers for Fido

      18 June 2025

      Starlink to South Africa: ‘We are ready to invest’

      17 June 2025

      Vodacom CEO Joosub bags R71m in pay – but taxman will take a big cut

      17 June 2025

      Major rift opens between Microsoft and OpenAI

      17 June 2025
    • World

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Cryptocurrencies » Bitcoin seen as reason for sliding Tesla correlation to Big Tech

    Bitcoin seen as reason for sliding Tesla correlation to Big Tech

    By Agency Staff15 July 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Elon Musk

    Tesla’s shares have become less correlated with those of large US technology companies ahead of the electric vehicle maker’s earnings report and bitcoin may be the reason why.

    The 20-day correlation between Tesla’s stock price and the Nasdaq 100 index has fallen from 0.83 on 17 June to 0.14 as of Wednesday. A decline can also be found in the relationship between the EV company’s shares and the NYSE Fang+ index, which includes the biggest tech firms such as Facebook, Apple, Amazon.com and Netflix. Tesla reports earnings on 26 July.

    “Tesla is highly correlated to megacap tech and this relationship has really decoupled in the near term,” Amy Wu Silverman, derivatives strategist at RBC Capital Markets, said in e-mailed comments. “When I ask around, the feedback I get is that this is related to their bitcoin exposure and how it will have to be accounted for when they report earnings.”

    Tesla in February disclosed a US$1.5-billion investment in bitcoin after favourable comments about the largest cryptocurrency from Musk

    Tesla in February disclosed a US$1.5-billion investment in bitcoin after favourable comments about the largest cryptocurrency from CEO Elon Musk. The move sparked speculation that other companies would follow — though few have. Tesla has since sold a portion of the holdings, and Musk has emerged as a critic of bitcoin for reasons including energy consumption.

    Tesla has dropped almost 4% this month, while the Nasdaq 100 is up more than 2%. Bitcoin has dropped from a peak of almost $65 000 in mid-April to about $32 500 amid a broad retreat in investor appetite for speculative assets like cryptocurrencies.

    ‘Extremely steep’

    Silverman noted that Tesla also has “extremely steep” skew, a measure of how expensive bearish options are relative to bullish ones.

    “This is highly unusual for Tesla which spends a lot of the time with ‘inverted skews’ because both institutions and retail adore buying out-of-the-money call options in the name,” she said. Those looking for bearish trades might do well to use put spreads to take advantage of the high skew, Silverman added.  — Reported by Joanna Ossinger, (c) 2021 Bloomberg LP



    Bitcoin Elon Musk Tesla top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEskom warns it’s struggling to keep the lights on
    Next Article Twitter, Facebook struggle to control racist use of emojis

    Related Posts

    Starlink to South Africa: ‘We are ready to invest’

    17 June 2025

    Up to Icasa whether Starlink gets a licence: Malatsi

    11 June 2025

    EV bloodbath in China

    9 June 2025
    Company News

    Disrupt first, ask questions later – the uncomfortable truth about incident response

    18 June 2025

    Sage brings together HR leaders to explore the future of payroll and people management

    18 June 2025

    Altron: a brand journey, a birthday celebration and a bet on Joburg’s future

    17 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.