Forget the’S&P 500 effect’… “Musk bitcoin mentions also fueled decline”
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The share price of Tesla, a U.S. electric car maker, fell below $700 during the intraday as bitcoin was caught.
The Bloomberg news agency reported on the 23rd (local time) that Tesla shares had slipped to $619, down 13% during the week on the New York Stock Exchange.
Tesla is continuing its fluctuations at the $680 level, down 3-4% this afternoon (Eastern Time).
The news agency reported that Tesla also forgot about the rally effect of the incorporation of the Standard & Poor’s (S&P) 500, a representative US stock index, due to a plunge in the stock price that day.
Tesla’s share price on December 21, which was officially incorporated into the S&P 500, was $649.86.
On the 8th, Tesla announced that it had purchased $1.5 billion in cryptocurrency Bitcoin, triggering a bitcoin rally.
However, when the price of bitcoin falls, Tesla’s stock price is also going down.
Bitcoin surpassed $50,000 for the first time on the 17th, but US Treasury Secretary Janet Yellen warned of a surge in price on the 22nd, saying, “Bitcoin is a very speculative asset,” and the current market price has been pushed to $47,000.
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After the plunge in Bitcoin, Tesla closed the market at $714.50, down 8.55% the day before.
In addition, there is an analysis that the mention of bitcoin by Tesla CEO Elon Musk also affected the cryptocurrency market and Tesla stock price at the same time.
Musk said on Twitter on the 20th that the price of Bitcoin and Ethereum seems to be high.
The news agency said, “Amid the increasing sales of investors to Tesla, Musk’s mention of bitcoin partially fueled the stock price decline.”
“There are still concerns that Tesla’s bitcoin entertainment could cast a shadow on the growth story of electric vehicles,” said Daniel Ives, analyst at Wedbush Securities.
In addition, Tesla’s recent sudden suspension of sales of the cheapest product line among sports utility vehicle (SUV) Model Y and lowering the price of the entry-level sedan Model 3 was interpreted as a signal of a decrease in demand for Tesla electric vehicles, which affected the stock price decline, CNN broadcast said Told.
/yunhap news
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