Bitcoin vs Tesla: Which Has Been the Better Investment?
Compare two of the most talked-about investments of the last decade. Analyze Bitcoin and Tesla stock performance with historical data and growth charts.
Performance Comparison
Chart shows percentage returns from the start of the selected period. Interactive: hover for details.
What is Bitcoin?
Bitcoin is the original cryptocurrency, created in 2009 as a decentralized digital currency. It has grown to become a trillion-dollar asset class and is increasingly viewed as a legitimate store of value.
Bitcoin's value proposition centers on its fixed supply of 21 million coins, decentralization, and growing adoption by individuals, corporations, and even nation-states.
Interestingly, Tesla itself holds Bitcoin on its balance sheet, having purchased $1.5 billion worth in early 2021, highlighting the intersection between these two investments.
What is Tesla?
Tesla, Inc. is an American electric vehicle and clean energy company founded by Martin Eberhard and Marc Tarpenning in 2003, with Elon Musk joining as chairman and later becoming CEO.
Tesla has revolutionized the automotive industry with its electric vehicles, including the Model S, Model 3, Model X, and Model Y. The company also produces energy storage systems and solar products.
Tesla went public in 2010 at $17 per share (split-adjusted: ~$1.13) and has since become one of the most valuable companies in the world, known for its innovation and Elon Musk's ambitious vision.
Bitcoin vs Tesla: Key Differences
Both Bitcoin and Tesla have been exceptional investments over the past decade, attracting devoted followers and skeptics alike. Here's how they compare.
Asset Type
Decentralized digital currency with no central authority or CEO
Publicly traded company stock with management, employees, and products
Valuation Basis
Value derived from scarcity, network effects, and store of value thesis
Value based on earnings potential, revenue growth, and future cash flows
Income
No dividends or earnings - purely price appreciation
Potential for future dividends, though Tesla currently reinvests profits
Volatility
Highly volatile with regular 30-50% corrections
Also volatile for a large-cap stock, often moving with tech sector and Musk's tweets
Regulatory Risk
Subject to cryptocurrency regulations worldwide
Subject to automotive, energy, and SEC regulations
Risk Factors to Consider
Bitcoin Risks
- Extreme price volatility
- Regulatory uncertainty globally
- No underlying business or cash flows
- Competition from other cryptocurrencies
- Technology and security risks
Tesla Risks
- Key person risk (Elon Musk)
- Intense competition in EV market
- High valuation relative to current earnings
- Manufacturing and supply chain challenges
- Regulatory risks in automotive industry
Best Use Cases
When to Choose Bitcoin
- Store of value and inflation hedge
- Portfolio diversification
- Decentralized, censorship-resistant savings
- Global, 24/7 tradeable asset
- Exposure to cryptocurrency adoption
When to Choose Tesla
- Exposure to electric vehicle revolution
- Growth stock investment
- Bet on sustainable energy future
- Exposure to autonomous driving technology
- Investment in Elon Musk's vision
Frequently Asked Questions
Both have been exceptional investments. Since Tesla's IPO in 2010, both assets have delivered returns of thousands of percent. The exact comparison depends on the time period chosen. Both have also experienced significant drawdowns of 50% or more.
Yes, Tesla purchased $1.5 billion worth of Bitcoin in early 2021. While they sold some of their holdings, Tesla still holds a significant amount of Bitcoin on their balance sheet, making Tesla stock partially exposed to Bitcoin's price movements.
Generally, Bitcoin is considered more volatile and risky than Tesla stock. However, Tesla is unusually volatile for a large-cap stock. Both are considered high-risk, high-reward investments compared to traditional index funds.
Diversification across different asset types can reduce portfolio risk. If you believe in both the cryptocurrency thesis and Tesla's future, holding both could make sense. However, both are high-risk investments, so position sizing should reflect your risk tolerance.
More Comparisons
Bitcoin vs S&P 500
Compare Bitcoin vs S&P 500 returns since 2010. See which investment performed be...
Bitcoin vs NVIDIA
Compare Bitcoin vs NVIDIA (NVDA) stock performance. See historical returns, vola...
Bitcoin vs Apple
Compare Bitcoin vs Apple (AAPL) stock performance. Analyze historical returns, v...
Bitcoin vs Microsoft
Compare Bitcoin vs Microsoft (MSFT) stock performance. See historical returns, A...
Ready to Compare Your Investment?
Use our free calculator to see how your investments would have performed if you had chosen Bitcoin instead.
Try the Calculator