Why Bitcoin May Just Be the Start of Tesla's Woes

You are receiving this as a part of your subscription to Profit Pregame. To remove your email from this list, [unsubscribe here](. [Profit Pregame] [0 Losses and 27 Wins: New Trade Recommendation Could Be Winner #28]( Folks can begin their week up to $400 richer with the right size stake, all you have to do is execute a specific trade on one of the top stocks on the market - [like this](. Right now, this pattern is 27 for 27 since April 2020 - and the streak could continue, paying out in huge sums of cash. Take a closer look at Wall Street's top-performing stocks, and [watch this](. --------------------------------------------------------------- Wednesday, February 24, 2021 [Why Bitcoin May Just Be the Start of Tesla's Woes]( Tesla's Bitcoin Gains Go as Fast as They Came Tesla's stock is reeling from Bitcoin's nose-dive. Here's why this may not be the buying opportunity it looks like. What's happening? Shares of Tesla, Inc. (TSLA) have been having a rough week so far, falling by as much as $149 between Friday's close and Tuesday morning. While some analysts have been speculating that TSLA is overvalued for a while now, what you need to understand is that this week's drop likely has very little to do with Tesla's performance in the electric vehicle space. What's really sending Tesla's stock through the floor right now is the company's investment in Bitcoin. Earlier this month, Tesla announced that it had purchased $1.5 billion worth of Bitcoin. Then on Saturday, Elon Musk seemingly torpedoed Tesla stock - not for the first time - with a tweet in which he said the price of Bitcoin "seemed too high." Well, either Musk was correct, or his comment provoked a major sell-off of Bitcoin. In either case, Bitcoin has fallen off a ledge since Sunday, dropping to just under $46,000 at its low point yesterday. The drop in Bitcoin has investors concerned about Tesla's large position in the cryptocurrency and how it will affect TSLA's valuation. That prompted a plunge of more than 19% in TSLA stock since Friday before the stock found some buyers yesterday and stopped the bleeding. While I'd normally look at a drop like this as a great buying opportunity, there's a few reasons why I'm wary of Tesla right now. Here's why... Where's the money? The last few days have seen a major rotation out of many of the stocks that have been red-hot for months now. And without the extreme buying momentum to support them, quite a few of those stocks are coming back down to earth. The electric vehicle space is one in which a lot of valuations are way out of line with reality. A great example was yesterday's news that Lucid Motors - a high-end EV company - will be entering the market through the SPAC Churchill Capital Corp. (CCIV). The hype surrounding the rumors of Lucid's merger drove its value up to nearly $96 billion, briefly making it the fourth most valuable automaker in the world before CCIV shares fell roughly 30% yesterday - all before Lucid has even sold a single car. So, as you can see, there's a ton of uncertainty and volatility in the EV space right now. Here's how I'm going to treat it for the time being... How do I get some? As far as Tesla, Inc. (TSLA) stock is concerned, I think that $619 low could hold for a while. However, we could continue to see selling pressure in the big EV names, SPACs, and everything that has insane P/E without much earnings. Until we see earnings figures that support such a high valuation, or investors start rotating back into the stock in a big way, I'm going to be giving TSLA a wide berth. This Makes Bitcoin Look Like Small Potatoes While Bitcoin may have taken a tumble in recent days, there are still lucrative opportunities in the world of cryptocurrencies. There's more money to be made in cryptocurrency than just buying Bitcoin. A lot more. In fact, for every $1,000 you could have made during Bitcoin's incredible run up, my colleague Tom Gentile has uncovered a special trade that could have made you as much as 20 times that amount...within 2 months. And going forward, he expects the gains to keep on coming fast and furious. [Click here]( to see exactly how Tom is able to give his followers the chance to cash in some of the most unbelievable profits I've ever seen. In the Spotlight: Gearing up for a summer of profits... Yesterday, standard & Poor's released a report that indicated home price growth accelerated at its fastest pace in eight years during the fourth quarter of 2020. Over the entire year, home prices rose by double digits. Between historically low interest rates, high demand for housing, rounding the corner on the pandemic, and the approaching spring months, we could be seeing a perfect storm developing for the homebuilding and real estate industries. Generally, the months of April through June account for more than 40% - so we may be on the precipice of a major boom in home sales very soon. I'll be digging into some of my favorite stocks in these spaces to give you the best chance to profit this summer. Keep an eye on your inbox for more from Profit Pregame. --------------------------------------------------------------- Please do not reply to this email. It was sent from an unmonitored mailbox. You are receiving this e-mail at {EMAIL}, as part of your subscription to Profit Pregame. To remove your email from this list: [unsubscribe here](. 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