Elon Musk’s Tesla stock price faced a slump in the last few days, as the earnings report highlights a significant drop. As the stock and crypto markets had crashed earlier, the impact was significant on Tesla’s Bitcoin holding, affecting their earnings. However, with new updates and investors’ settled sentiments, the TSLA price is rising again. Time to buy? Let’s discuss.
Tesla Stock Price Settles After Earnings Report
The Tesla stock price has been down nearly 27% in YTD, and the primary stimulus is Tesla’s 71% drop in the Q1 net income, according to CNN. The Tesla earnings report reveals that the company only managed a profit due to the sale of $595M in regulatory credit, not cars.
More importantly, the Gross automotive profit margin dropped to its lowest since 2012, concerning stock investors. The TSLA stock price hit bottom at $221.86 in early April due to macroeconomic events, and again crashed to $227.50 amid the earnings report.
However, the stock has recovered significantly as Elon Musk plans to exit D.O.G.E. (Department of Government Efficiency). This decision was made concerning the performance of the company and the constant allegations that Musk was using D.O.G.E. to avoid legal issues.
Experts anticipate that Tesla is in serious trouble, but Musk denies the claims, stating, “We’re not on the ragged edge of death.”
Although he has admitted that there are challenges, he remains optimistic. Additionally, the Airbnb co-founder and Tesla board member Joe Gebbia has purchased 4,000 shares of Tesla, making it the first insider purchase since 2020.
This suggests increasing confidence in the company. Due to these events, the TSLA stock price regained some uptrend, currently worth $285.88. Many crypto stock prices are also attempting to recover amid improving macroeconomic events.
Tesla Stock Price News: When to Buy?
In these ups and downs, some investors are seeing a buying opportunity. One such crypto expert presented the timelines on when to sell and when to buy. According to StrengthPlan, the investors can consider buying once the Tesla stock price reaches $222 in May.
At that time, it would act as a local bottom retest, providing the right opportunity. The post also mentioned the stock reaching the same local bottom in January 2026, acting as a buying opportunity.
At the same time, it mentioned $465 as the all-time rejection zone, i.e., the stimulus to sell. Interestingly, the next selling point is $645 once it hits a new ATH.
Overall, the expert’s analysis forecasts a potential TSLA price crash in May 2025 and a new ATH in summer 2026.
Since its launch in late March, World Liberty Financial’s stablecoin USD1 has achieved an impressive market capitalization, reflecting strong investor interest. If the creators want to maximize USD1’s reach by accessing markets abroad, particularly in Europe, they must confront MiCA’s extensive compliance list.
In a BeInCrypto interview, experts from Foresight Ventures, Kaiko, and Brickken stressed the importance of stablecoin issuers having substantial European bank reserves, operational volume caps protecting the euro, and transparent USD1 information to ensure transparency and avoid conflicts of interest.
USD1’s Search for Dollar Dominance
World Liberty Financial (WLF), a decentralized finance (DeFi) project heavily associated with the Trump family, officially launched USD1 a month ago. Through this stablecoin, WLF aims to promote dollar dominance worldwide.
So far, this initiative has been working well for WLF. According to CoinGecko, USD1 has now surpassed a market capitalization of $128 million and reached a 24-hour trading volume of nearly $41.6 million. The project has already released 100% of its total supply of 127,971,165 tokens.
USD1’s market capitalization over the past 24 hours. Source: CoinGecko.
For WLF to seriously establish dollar dominance across the globe, it will have to move fast and efficiently. This urgency stems from the need to surpass its main competitors, USDT and USDC. These rivals currently hold a massive market share advantage.
Additionally, there’s a need to maintain a competitive advantage against established currencies like the euro.
USD1 needs to access foreign markets and stand out from established competitors to achieve this. Should Europe become a primary target, USD1 must prepare to tackle numerous challenges head-on.
The EU’s Stringent Compliance Demands
The European Union (EU) became the first jurisdiction in the world to establish a comprehensive regulatory framework for digital assets across its 27 member states. This regulation, known as Markets in Crypto-Assets (MiCA), has been in effect for nearly four months. Through this legislation, the EU has confirmed how seriously it takes compliance with a defined regulatory regime.
The regulation is detailed and clear, leaving no room for interpretation. If USD1 wants to operate in this crypto market of 31 million users, it must ensure it meets every demand.
US Senators Flag Risks of Presidential Involvement in USD1
In the letter, the group asked both agencies to clarify how they plan to uphold regulatory integrity following the issuance of USD1.
The Senators cautioned that letting a president personally benefit from a digital currency overseen by federal agencies he has sway over is a big risk to the financial system. They argued that an unprecedented situation like this one could hurt people’s trust in how regulations are made.
“The launch of a stablecoin directly tied to a sitting President who stands to benefit financially from the stablecoin’s success presents unprecedented risks to our financial system,” they argued.
The letter further detailed situations where Trump could directly or indirectly affect decisions regarding USD1.
As things stand, USD1 isn’t well-prepared to follow MiCA’s strict reporting and transparency rules.
How Do Concerns Over USD1 Impact MiCA Acquisition?
According to Ianeva-Aubert, if USD1 doesn’t clear up doubts over potential conflicts of interest, this would affect its ability to apply for an operating license in the European Union.
“MiCA requires strong governance, including independent directors and clear separation between owners and managers. Issuers must have clear rules to handle conflicts of interest. If USD1 has any conflicts, this could make it harder to comply,” she said.
Ianeva-Aubert also highlighted that WLF still hasn’t released enough public information on USD1 to assess the degree of its compliance effectively. In particular, the stablecoin issuer has not disclosed the measures it would take to safeguard against market manipulation.
As of now, USD1 would likely fail MiCA’s transparency tests. However, industry experts pointed out other parts of the framework that might be even larger obstacles for USD1 to operate across the European Union.
Impact of the EU’s Reserve Mandate on USD1
When asked about the biggest regulatory hurdles USD1 would face in securing a MiCA license, experts’ responses were unanimous. The stablecoin would need to store a large portion of its reserves in a European bank.
This mandate has proven difficult for established stablecoin issuers seeking operations across the region.
This regulation aims to ensure seamless accessibility for European crypto users and traders. For Forest Bai, Co-founder of Foresight Ventures, USD1 could capitalize on this opportunity during the early stages of its development. By doing so, it could avoid some of the obstacles its competitors had to endure.
Yet, even as USD1 scales and its demand grows, other mandatory requirements could restrict its scope of success.
MiCA’s Transaction Volume Caps to Preserve Euro Dominance
As part of the MiCA regulation, the European Union has taken specific measures to safeguard the euro’s dominance. If a digital currency not denominated in euros were to become extensively adopted for daily payments within Europe, it could present a potential risk to the European Union’s financial sovereignty and the stability of the euro.
To contain this possibility, MiCA places volume caps on transactions used as a means of exchange within the EU.
In other words, MiCA establishes predefined limits on the transactional volume of such currencies. The EU initiates regulatory measures when these limits are exceeded due to widespread payment usage.
Specifically, USD1 issuers must suspend any further digital currency issuance and provide a remediation plan to the relevant regulator, outlining steps to ensure their usage does not negatively impact the euro.
If USD1 wants to work in places where it can experience uninhibited growth, the European market might not be the best fit for this stablecoin. Other parts of MiCA also suggest this could be the case.
MiCA Limitations to Stablecoins as Investment Vehicles
EU regulators have been clear that stablecoins, or e-money tokens (EMTs), as the regulation refers to them, are payment instruments that should not be confused with investment vehicles. The MiCA framework has a few rules in place to prevent this.
Given the circumstances, experts like Bai think WLF might want to focus on countries with better market conditions for stablecoin issuers.
Should WLF Consider the EU Market for USD1 Operations?
While the European Union has an undeniable crypto market presence, other jurisdictions have an even larger footprint.
”The EU’s crypto market remains comparatively small, with just 31 million users versus Asia’s 263 million and North America’s 38 million users, according to a report from Euronews. This limited market size may not justify MiCA compliance costs for projects, like WLFI,” Bai told BeInCrypto, adding that “Projects ultimately determine their own growth strategy. Given that, currently, the EU represents a secondary market for USD1, the project’s strategic priorities may naturally shift toward regions with less stringent stablecoin regulations to drive its adoption.”
These circumstances alone may prompt USD1 to reconsider its options.
In fact, USD1 could start by gaining a competitive edge right at home.
USD1’s Political Backing at Home
With a crypto-friendly president in office –whose very crypto project officially announced the launch of USD1– the stablecoin has sufficient backing to make its mark.
Looking past the immediate future, Bai underlined that if the US doesn’t keep developing supportive crypto regulations, USD1’s growth in the country could be held back following a government shift.
Given this reality, USD1’s failure to comply with the EU’s regulations, should it ever even consider applying for a MiCA license in the first place, could have negative consequences for the project’s long-term viability.
Regardless of the markets WLF evaluates in its efforts to increase the reach of USD1, compliance with general stipulations concerning transparency, legal architecture, and real-time transaction oversight could be conducive to its eventual success.
In a recent “Ask Me Anything” session on YouTube, Cardano founder Charles Hoskinson dropped major updates on two key partnerships. While talks with Ripple’s XRP team are progressing smoothly, he revealed that the collaboration with Chainlink is taking longer than anticipated.
Hoskinson sounded very positive about Cardano’s work with Ripple. He shared that soon, XRP will be supported in Cardano’s Lace wallet, allowing users to store their XRP safely.
Launched in April 2023, the Lace Wallet started with support for Cardano native assets like ADA but has since evolved into a multi-chain wallet through several updates. This integration will allow users to seamlessly manage XRP alongside ADA and BTC directly from the wallet.
XRP Holders To Be Included In Midnight Airdrop
He confirmed the feature is in development but didn’t specify when it will be rolled out. XRP holders will also be included in the Midnight airdrop, Cardano’s new privacy project. Earlier, he shared that the NIGHT airdrop will reach 37 million users, including XRP holders, across eight blockchains, including Bitcoin, Ethereum, Cardano, and XRP Ledger.
Talking about stablecoins, he mentioned that discussions with RLUSD are ongoing, hinting that Cardano might soon support Ripple’s fiat-backed stablecoin. Hoskinson added that his strong ties with Ripple’s team, especially with CTO David Schwartz, is speeding up their collaboration.
He also shared that Flare Network plans to bring its oracle services to Cardano, expanding the partnership beyond Ripple.
Chainlink Delayed Due to Codebase Issues
Coming to Chainlink, Hoskinson noted that things are still friendlier with Chainlink’s founder, Sergey Nazarov, but the partnership has not moved forward yet. Chainlink is working on a new framework for integration, but it has been delayed several times, often by three to six months.
The delays were due to Chainlink’s outdated codebase and complex updates, while noting other oracle options like Pyth Network and Flare.
The post Charles Hoskinson Confirms XRP Integration and Midnight Airdrop for Holders appeared first on Coinpedia Fintech News
In a recent “Ask Me Anything” session on YouTube, Cardano founder Charles Hoskinson dropped major updates on two key partnerships. While talks with Ripple’s XRP team are progressing smoothly, he revealed that the collaboration with Chainlink is taking longer than anticipated. Hoskinson sounded very positive about Cardano’s work with Ripple. He shared that soon, XRP …
