Elon Musk lost $ 15 billion in a day, he is no longer the richest in the world. All because of bitcoin

According to Dan Ives, an analyst at Wedbush Securities, Musk could have fallen victim to a domino effect: some Tesla investors began to divest their shares amid falling bitcoin prices, as Musk’s company, although it does not experience any problems itself, has become associated with bitcoins and related to them. risks.

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This happened after Elon Musk made a very large investment in cryptocurrency.

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Why are investors getting rid of bitcoins?

After Tesla announced that it has invested $ 1.5 billion in cryptocurrency and plans to accept it as payment for its products, the value of bitcoins has increased by almost 50%.

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Photo author, Getty Images

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However, having reached a record $ 57 thousand for one bitcoin on Sunday, the cryptocurrency quickly lost 20% of its value, and on Tuesday bitcoin went for less than 48 thousand.However, this is still more than bitcoin was worth before Musk’s announcement of the big purchase.

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And if Musk was credited with the fact that the value of bitcoins had risen so sharply, now he is being criticized for the recent drop in the rate. The fact is that over the weekend, the entrepreneur tweeted that the cost of bitcoin “seems high, lol”.

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Fuel was added to the fire by the words of US Treasury Secretary Janet Yellen, who said on Monday that bitcoins are “an extremely inefficient way to conduct transactions.”

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What else threatens Tesla?

While Musk is fond of cryptocurrency, his company is faced with a number of problems.

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Recently, sales of the budget version of the Y model were suspended: Musk cites the desire to increase the range on a single charge as the reason.

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Photo author, Getty Images

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In early February, Chinese regulators demanded a quality and safety report from the firm amid reports of battery fires and uncontrolled acceleration.

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In addition, competitors such as General Motors and Volkswagen have become increasingly interested in electric vehicles.

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Tesla shares remain the main source of Musk’s wealth so far. Last year they jumped from $ 90 to over $ 700 a share.

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In January, Musk even surpassed Amazon owner and founder Jeff Bezos to become the No. 1 richest person in the world. At the same time, many are wondering whether the shares of a company that produces negligible cars compared to its competitors are overvalued.

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On Monday, Tesla shares saw their biggest drop since last September, making Musk $ 15 billion poorer all at once.

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Musk’s reckless tweets do not contribute to stability. As recently as last summer, his company lost 14 billion in market value just because an eccentric entrepreneur wrote that he believed the company’s stock was overvalued.

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