“This is all because of Musk’s mouth”… What about Tesla with Bitcoin?

It seems that Tesla, an American electric vehicle company, has been tied up with cryptocurrency Bitcoin.

This is because Tesla and bitcoin prices are fluctuating together with the recent bitcoin-related remarks by Elon Musk’s CEO.

Tesla shares closed at $698.84, down 2.19% from the New York Stock Exchange on the morning of the 23rd (local time), but plunged to 13% during the day.

Musk, who showed interest in investing in bitcoin this year, announced in a public announcement on the 8th that it has purchased $1.5 billion (about 1.668 trillion won) worth of bitcoin.

When the news was delivered, Bitcoin soared and surpassed $50,000 for the first time on the 17th. Then Musk said on Twitter on the 20th that the bitcoin price was rather high. These remarks fueled Bitcoin’s weakness. To make matters worse, the market price plummeted on the 22nd, when US Treasury Secretary Janet Yellen affirmed Bitcoin as a’speculative asset’. Bitcoin, which exceeded 50,000 dollars, has been pushed back to 47,000 dollars.

During this period, Tesla stock prices also fluctuated. On the 22nd, it plummeted 8.55% and on the 23rd, 700 dollars collapsed.

It has dropped by 25% since the last 8th. The market cap also decreased by about $215 billion, down to $620 billion (about 689 trillion won).

It wasn’t just Musk’s comments about Bitcoin that drove down Tesla’s stock price.

According to Wall Street’s analysis, Tesla recently discontinued its low-cost sports utility vehicle (SUV)’Model Y’and lowered the price of the popular model’Model 3′. This means that investors who predicted a decline in demand for electric vehicles sold off successively.

Daniel Ives, an analyst at the US investment bank Weedbush, said, “By making Musk ties Tesla to bitcoin, it could put the electric car stock price at risk.”

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