Did Shiba Inu, Dogecoin Perform Better Than Tesla in 2022?

Lavina Daryanani
Source: CryptoSlate

As far as comparisons go, this is an outrageous yet, reasonable one. Alongside bearish news updates, 2022 also saw Elon Musk make it to the headlines on quite a frequent basis. So, along with the bears, it wouldn’t be wrong to say that this year also belonged to Musk.

Assets from the financial space, especially cryptos like Dogecoin and Shiba Inu, have seldom hesitated to dance to Musk’s music. The Twitter executive, however, couldn’t do much to save the price of such assets this year.

It’s known that Bitcoin and Ethereum have suffered and shed around 60-70% each this year, but so have other Elon Musk-related asset prices. The stock price of his own company Tesla noted a 64.42% YTD dip. Dogecoin was down 54.36%, while Shiba Inu lost 75.22% in the same timeframe.

Did Twitter Snatch Away Tesla’s Father?

Specifically speaking of Tesla, the downtrend was slightly off-beat. More so, because other stocks from the same sector like Ford [F] and General Motors Company [GM] fared better. Ben Hunt, the Co-Founder, and CIO at Epsilon Theory recently tweeted,

“It’s so weird that the macroeconomic environment has impacted Tesla (-41%) and not Ford (+1%) or GM (+8%) over the past six months.”

As illustrated below, the returns of the said stocks moved in tandem until October. Post that, however, Tesla’s price rolled down the cliff, while Ford and General Motors managed to clasp back.

Hunt further exclaimed,

It’s almost as if something else happened in mid-October.

Source: Twitter

Notably, Elon Musk finalized his Twitter deal in the month of October. And Tesla’s price registering a free-fall around the same time was perhaps its way of lamenting about another having to share its ‘father’ with another company.

Ross Gerber, Head of Gerber Kawasaki Wealth Management, recently opined,

Tesla stock price now reflects the value of having no CEO.

Gerber further went on to add that Tesla required clarification from Musk about when he’ll be “back” from Twitter. He also added that Tesla needed to communicate about its Musk’s stock sales.

The Tesla-Twitter executive was quick to revert back to the same. In fact, he did not hesitate from asking Gerber to go and read his old Securities Analysis basics textbook. Further reasoning out stock price drops “simple terms,” Musk said,

As bank savings account interest rates, which are guaranteed, start to approach stock market returns, which are *not* guaranteed, people will increasingly move their money out of stocks into cash, thus causing stocks to drop.

What To Expect From Tesla, Dogecoin, Shiba Inu Next?

Going forward, however, things might change. It is known Musk has been on the hunt for a new CEO for Twitter after users prompted him to step down via a poll. So, when he runs only the software and server teams, he’d probably get more time to focus on his automotive company.

Alongside, the executive also affirmed a few hours back that will not sell any Tesla shares until 2025. That statement has already managed to flip the sentiment slightly. Press time data showed that the stock was up by almost 1.24% in the pre-market hours on Friday.

As far as other assets like Shiba Inu and Dogecoin are concerned, 2022 made it clear that Musk cannot always aid their sinking boats. For them to thrive in 2023, they will have to constantly make improvements on the fundamental side. Parallelly, their macro correlation with Bitcoin and Ethereum will also come into play to dictate their recovery.

Source: 1Y Correlation Matrix