It’s been a tough week for Tesla (NASDAQ:TSLA) so far. Negative market sentiment toward the tech sector has pushed TSLA stock down, and there are still no signs of a rebound in sight. Some investors have questioned the stability of the company. However, most eyes seem to be on Tesla’s Bitcoin (CCC:BTC-USD) holdings. According to its 10-k filed with the U.S. Securities and Exchange Commission (SEC), the company finished 2021 with $2 billion worth of Bitcoin. This has certainly raised some eyebrows, but Tesla should be focused on expanding its ties to the world of cryptocurrency.
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TSLA Stock and Bitcoin
It’s true that the prices of both Bitcoin and TSLA stock have been volatile this year. That said, price predictions for the former remain quite bullish. Investors shouldn’t be worried about Tesla’s crypto exposure. 2021 saw Bitcoin rise to record-high prices. While they did come down, the crypto certainly finished the year in the green.
TSLA stock is struggling today, but that can be attributed to market momentum that is affecting the tech sector. The recent fall of Meta Platforms (NASDAQ:FB) has investors reconsidering the type of tech investments that are safe. Both Ford (NYSE:F) and General Motors (NYSE:GM) are down today as well. For all its volatility, TSLA stock has performed better than either one so far, falling only 0.2%. Bitcoin isn’t the company’s problem.
The Road Ahead for TSLA Stock and Crypto
It’s well known that CEO Elon Musk has the power to move crypto prices with just a tweet. In October 2021, Musk admitted to acquiring Bitcoin, Ethereum (CCC:ETH-USD) and Dogecoin (CCC:DOGE-USD). Consequently, all three names shot up almost instantly.
Musk has long been a fan of crypto, though. In March 2021, he announced that Tesla would begin accepting Bitcoin. This did not last, due to environmental concerns, but it lent quite a bit of credibility to the crypto as a method of payment. Earlier this year, Tesla began accepting Dogecoin as a payment option for merchandise. So far, it’s gone well for both. This seems like the opportune time for Tesla to consider expanding its crypto ties. Musk is credited as the “Dogefather” due to his ability to move Dogecoin. He should consider accepting Shiba Inu (CCC:SHIB-USD), the token’s pupcoin peer that was created to be its killer.
Getting the Dogecoin treatment could do wonders for Shiba Inu’s credibility. A popular argument against meme tokens is that they lack any real world utility. The ability to help consumers make purchases from one of the world’s leading companies would fix that quickly.
That door swings both ways, though. Shib’s following, known as the “SHIB Army,” is large and dedicated to helping the token succeed. Having the support of an entirely new digital army would be great for TSLA stock. While it wouldn’t necessarily lead to a spike in electric vehicle (EV) sales, it would help keep market momentum moving in Tesla’s favor at a time when faith in the tech sector is low.
The Bottom Line
Shiba Inu price predictions are mixed, but some platforms still remain bullish on the pupcoin. If there was even a whisper that Musk was planning on accepting it, even for small purchases, the buzz would sent the token through the roof. If would also give TSLA stock the shot in the arm that it needs to pull back into the green.
The volatility of meme coins has made many investors nervous. Indeed, even some experts still doubt them. Since Musk is so much of the reason that the pupcoin pack even exists, though, it’s not crazy to think he could be the business leader who helps take one of Dogecoin’s peers mainstream. This is a great time for him to consider it.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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