Tesla Has Plunged 25% And Lost $200 Billion In Market Value Since Its Bitcoin Investment

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I'm a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC's Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com.

Tesla's meteoric tear is unraveling this month as experts start to worry that the stock's performance could start to mimic bitcoin's extreme volatility after the firm disclosed a $1.5 billion investment in the world's largest cryptocurrency earlier this month.... [+]Shares of Tesla at one point plunged more than 10% Tuesday morning, pushing their losses since February 8–when the firm first disclosed its $1.5 billion bitcoin investment–to more than 25%.

That crippling blow to Tesla stock has erased about $215 billion in the firm's market capitalization, which stands at about $620 billion, since the investment, at which time the firm's market cap was near a high of $844 billion. The recent plunge comes as bitcoin prices tank about 7% after Tesla's billionaire chief, Elon Musk, said over the weekend that the cryptocurrency's prices looked"a little high," Oanda Senior Market Analyst Craig Erlam said Tuesday morning.

In a note to clients Tuesday, Wedbush Analyst Dan Ives said that"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. Though he remains bullish on Tesla's stock, Ives also pins the recent losses to the firm halting sales of its lowest-priced Model Y and ongoing price cuts that have led to demand concerns among Wall Street analysts."The electric-vehicle space is in the early days of playing out," Ives said Tuesday, noting that Tesla dominates the market, which is set to grow to an estimated $5 trillion over the next decade.

 

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and when it hit's 100k, what will you write?

Fast forward to summer 2021 - I am curious about the title of your tweet. How it will read in June/ July on Tesla BTC Don't be short sighted.

like .elonmusk didn't just buy more lol just wait!

Buy. The sly man knows how to play the game

As $TSLA goes so goes Bitcoin.

CarlosMaslaton

Elon, need text tonight.....like Bitcoin under valued 😳

amirul_alig bhai ☝️

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Even after the dip, they have made more money from investing in $BTC than they did selling card in the entire year of 2020...meaning for once the company has actually reported turning profit for once. Crypto truth

Everyone knows Elon is either buying now or waiting until it falls lower, then buy, right?

BTC $BTC

What's a billion here, a billion there to Elon Musk?

Tesla is lead by lunatic ... It's a golf cart ...

TOTAL FUD. Tesla lost a few billion today after I took a shit. Doesn’t mean that cause and effect are related... nice try tho. Forbes has turned into total trash. 🗑

Nothing to do with bitcoin

👀So y'all is saying tesla is wroth 1 trillion dollars

😱

Welcome to the community, new Bitcoiners. Make sure you follow lisaMakT She understand Bitcoin and have an unflinching optimism about it. She is for transparency and trust 💯 “Everything is good for Bitcoin.”

DM guys i'm available for hookups

U ppl think short term... shame elonmusk knows what he is doing. Why r u bringing this news ? Are you paid by the competition ✅🤮🤔🤫

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