Exactly one month in the past, Dogecoin (CCC:DOGE-USD) costs shot up following an announcement from Elon Musk. The man hailed because the “Dogefather” confirmed that Tesla (NASDAQ:TSLA) was going to begin accepting the favored meme coin as cost for firm merchandise. This information despatched Dogecoin worth capturing up as traders contemplated what the long run would convey for each the unique meme coin and for Tesla inventory. Today, as we watch Dogecoin costs surge on the primary day of Tesla accepting it, we’ve got our reply. And whereas the patterns that we’ve seen from Tesla inventory haven’t been so thrilling, there’s no purpose for traders to fear.
What’s Happening With Tesla Stock
The first two weeks of 2022 have been marked by turbulence for the electrical automobile (EV) innovator. Today’s information hasn’t helped on this regard. As of this writing, Tesla inventory is down 0.83% for the day and appears prepared to shut out this week on a low word. However, the positive factors it skilled a couple of days in the past are retaining it within the inexperienced by 2.4% for the week. Shares stay up nearly 7% for the month, spurred by the expansion the inventory skilled earlier within the new 12 months.
Dogecoin, alternatively, has reacted properly to the information of the day. It is presently up nearly 9%. Despite its dip yesterday, the crypto stays within the inexperienced for the week by greater than 24%. Given the plunge that Dogecoin skilled on Jan. 10, that is welcome information for traders.
Why It Matters
To the untrained eye, this information may appear to be solely benefitting one concerned occasion. Everyone ought to keep in mind, although, that Tesla inventory is presently grappling with different market forces. The basic momentum isn’t working in its favor right now. As was the case yesterday, fellow EV producers Rivian (NASDAQ:RIVN) and Fisker (NYSE:FSR) have additionally been watching their shares decline all day. Additionally, Tesla’s current determination to delay the launch of its electrical Cybertruck is elevating some eyebrows amongst traders.
While EV buffs aren’t pleased that they’re going to have to wait one other 12 months for the Cybertruck, it shouldn’t fear traders. Musk is thought for lacking deadlines, however by way of all of it, Tesla has maintained its spot on the entrance of the EV race. And regardless of its turbulent December, Tesla inventory stays within the inexperienced by greater than 57% for the previous six months. Investors have lots to be optimistic about, significantly if the corporate secures its expansion into India. If it entails dangerous public relations, Tesla may be very possible to shake it off simply.
While it could not obtain a lot protection, Tesla does supply fairly a little bit of company-themed merchandise. Now that it’s accepting DOGE, it’s opened itself up to a brand new vary of buyers. As InvestorPlace’s Joel Baglole just lately laid out, “a whistle formed like Tesla’s Cybertruck prices 300 Dogecoin. At present costs, that comes out to about $59. A commemorative belt buckle to have fun Tesla’s Gigafactory in Texas may be purchased for 835 DOGE, or about $164.”
What It Means for Tesla Stock
While merchandise doesn’t signify a good portion of Tesla’s gross sales, accepting Dogecoin will solely assist enhance its social media traction. Dogecoin is the meme token that launched the pupcoin frenzy — it’s well-known that it’s powered by a powerful digital military. When the Dogecoin military will get tweeting, they might help costs rise. The approach it appears to be like from right here, Tesla solely stands to see each its merch gross sales and social media buzz improve.
Perhaps most significantly, this determination from Tesla helps lend additional credibility to Dogecoin. Musk has tweeted that he owns the crypto, however accepting it as cost demonstrates that the meme coin has actual world utility.
On the date of publication, Samuel O’Brient didn’t have (both instantly or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.