Summary List PlacementTesla’s $1.5 billion purchase of bitcoin last month means the company’s stock is “heavily tied” 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 earlier this month.
“It’s ‘buckle up the seat belt time’ again for Tesla’s stock with more volatility on the horizon,” Ives said.
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Tesla stock is “heavily tied” to bitcoin following its $1.5 billion purchase of the cryptocurrency last month, Wedbush analyst Dan Ives said in a note on Tuesday.
While Tesla’s purchase of bitcoin represents a “small amount” of the company’s overall cash position, perception is reality on Wall Street, with investors starting to tie bitcoin and the EV manufacturer “at the hip,” Ives said.
Tesla likely made paper profits of $1 billion on its January purchase of bitcoin, more than the…