Tesla’s stock is now ‘heavily tied’ to the fate of bitcoin after the company’s $1.5 billion purchase (TSLA).
- Tesla’s $1.5 billion purchase of bitcoin last month means the business’s stock is “greatly connected” to the digital currency, Wedbush analyst Dan Ives said in a note on Tuesday.
- Tesla stock has dropped 21% since it announced its purchase of bitcoin previously this month.
Tesla stock is “greatly tied” to bitcoin following its $ 1.5 billion purchase of the cryptocurrency last month, Wedbush expert Dan Ives said in a note on Tuesday.
While Tesla’s purchase of bitcoin represents a “small amount” of the business’s overall cash position, understanding is truth on Wall Street, with investors starting to connect bitcoin and the EV maker “at the hip,” Ives said.
Tesla likely made paper earnings of $1 billion on its January purchase of bitcoin, more than the revenues it made on its underlying automobile organization in 2020, according to Ives.
However bitcoin represents a double-edged sword for Tesla, and could work out for the business in the long-lasting as more companies embrace the cryptocurrency.
Cathie Wood of Ark Invest most likely concurs with Ives, provided that ARK’s ETF techniques have actually been purchasing the dip in shares of Tesla.
Wedbush restated its Neutral rating on Tesla and kept its $950 rate target for the company.
( the heading, this story has not been released by Important India News staff and is published from a syndicated feed.).