Earlier this month, Tesla announced that it has invested $1.5bn in Bitcoin. The results of this audacious move by the Elon Musk-led company have started trickling in, and it does not look good.
According to Forbes, the pioneer electric car company has plunged 25% and lost over $200bn in market value since its Bitcoin investment.
Nairametrics already reported the effect of this loss on the personal net worth of Musk, the CEO of the company.
Wedbush Analyst, Dani Ives in a note to its clients provided an expert opinion on what he believes is behind the recent Tesla plunge in the stock markets.
“For both good and bad, Tesla shares are now ‘heavily tied’ to Bitcoin prices–a development that’s driving a sell-off among cautious investors,” Ives said.
Ives furthered added a second reason for the losses which is Tesla deciding to halt the sales of its cheapest model Y car raising demand concerns amongst wall street analysts.
Tesla’s plunge in numbers
- Tesla shares plunged over 10% on Tuesday morning. This recent plunge has pushed its total loss since the Bitcoin investment to 25%
- Tesla has lost $215bn in Market capitalization.
- Tesla stocks shot up to over 740% in 2020. The stock is now at its lowest level since before it joined S&P 500 in late December
What you should know: Elon musk lost a whopping $12 billion on a single day and is no longer the richest man on the planet at the moment. Jeff Bezos of Amazon occupies that position now.