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.
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.