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On Monday, Tesla Inc. (NASDAQ:TSLA) shares edged lower 2.75% after Elon Musk ran a poll on Twitter asking his followers whether to sell 10% of his TSLA stock and use the proceeds to buy bitcoin (BTC/USD).
The poll received millions of votes with more than 50% voting in favour of the Tesla CEO selling 10% of his electric vehicles company’s shares for bitcoin. In return, the bitcoin price rallied to trade above $66,000.
The 10% sale would represent a value of about $25 billion, which Musk will have to meet the capital gains tax burden. He cited the recent reports that highlighted unrealised capital gains as a way of tax avoidance.
Musk wrote:
Much is made lately of unrealized gains being a means of tax avoidance, so I propose selling 10% of my Tesla stock. Do you support this? I will abide by the results of this poll, whichever way it goes.
Should you keep your TSLA shares?
In light of these developments, some investors could be wondering whether they should follow Musk’s lead.
But it may not be the brightest idea, given the cost implications for switching from one type of investment to another, in addition to the capital gains tax.
Moreover, Tesla offers exciting growth prospects with analysts predicting its earnings by more than 165% this year before rising at an average annual rate of 73% over the next five years.
Therefore, it may be best to hold your position to capitalize on the growth.
Technically, TSLA seems to be trading within an ascending channel formation in the intraday chart. However, it has recently pulled back to create a rebound opportunity.
Therefore, investors could target extended gains at about $1,242 or higher at $1,324, while $1,131 and $1,051 are crucial support zones.
Or is the bitcoin option more appealing?
Bitcoin has just surged closer to its all-time highs after Musk’s Twitter poll. The pioneer cryptocurrency is on the money to extend gains through the rest of the year after bottoming in July.
More companies are embracing bitcoin as a currency with governments also softening their stance. Therefore, the future of BTC could be bright despite the regulatory challenges it faces.
Technically, the bitcoin price seems to have spiked to trade closer to the trendline resistance in an ascending channel formation.
However, with the BTC/USD yet to reach overbought conditions, investors could target extended gains at $69,019, or higher at $72,280, while $62,878 and $59,550 are support levels.
The post What’s a better buy? Tesla stock or Bitcoin appeared first on Invezz.
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.