Because of Elon Musk and Bitcoin, Tesla has apparently fallen.
Tesla goes through a slow period now, this could be because of Elon Musk and his obsession with Bitcoin.
Elon Musk drives Tesla downwards!
In the past months, Elon Musk has been going back and forth with Bitcoin. He sent the cryptocurrency sky high in February when he purchased $1.5 billion worth of the digital asset then added it to Tesla’s balance sheet. Then, he made a bigger move when he claimed that his company would be accepting bitcoin payments for all Tesla-based goods and services in the near future.
However, Musk changed his opinion and said that he was going to take back his decision because he had concerns about the mining process and the environmental hazards that he represented. He also hinted on Twitter that he is considering selling his personal bitcoin stash. Because of these moves, the currency went downwards.
Musk seems to have his mind filled with Bitcoin and Crypto. Because of this, his company experienced some lags in the operations as of now. In a recent document, Morgan Stanley explained:
“Over the past couple of months, incoming client interest on Tesla is focused mostly on Chinese sales/production data and Elon Musk’s tweets regarding bitcoin. Might Tesla-bitcoin fever be telling us something about the lull in Tesla sentiment?”
Musk has been accused of taking the lead in a pump and dump scheme that involves Bitcoin. He denied such a move, saying that his company Tesla has only sold around 10% of its overall bitcoin holdings.
Furthermore, he claimed that his company will once again resort to accepting BTC payments in the near future if emissions from crypto mining are cut by 50%. This caused the currency to jump back up over $40,000 after weeks of lingering in the mid-$30,000 range.
Bitcoin drives the company down
Morgan Stanley continued in its report:
“You just know it is a rather dry spell for Tesla when bitcoin is the dominant new story and dominant driver of investor discussion day in, day out.”
So far, Tesla stock has experienced a dip of around 15% since the start of the year. It is now trading for approximately $597 per share. Morgan Stanley set a price prediction for Tesla of $900 per share by the time the year comes to an end.
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