Investing.com - the price of Tesla shares (NASDAQ: TSLA) is now directly related to the cost of bitcoins after Ilona Mask has invested $ 1.5 billion to unstable cryptocurrency, says Daniel IVS, Wedbush analyst.
"Mask is now tied to the history of Bitcoin in the eyes of Wall Street, and although Tesla received a profit of $ 1 billion in the first month after the purchase, it is associated with an additional risk, as we saw this week," said the expert in CNBC comments.
IVS added: "Mask risks the fact that this show with Bitcoins can eclipse the fundamental vision of electric vehicles in the nearest future for investors."
At the same time, despite the concerns expressed by the analyst, he still believes that the purchase of cryptocurrencies is "smart course for Tesla, made at the right time." "We believe that Tesla will achieve market capitalization of $ 1 trillion in a short time by increasing the supply of electric vehicles, not bitcoins," ITS is sure.
On Monday, the specialist calculated that Tesla has already earned more than $ 1 billion on their investments in Bitcoin. Earlier in February, the company announced that he bought bitcoins for $ 1.5 billion and is going to take them as a way to pay for its products. Since then, Mask constantly writes in Twitter about cryptocurrency, which causes an alarm of analysts.
In the first minutes after the start of trading on Tuesday, Tesla shares fell by 7.9% - to $ 657. This is lower than the level on which the papers were traded on the eve of the February inclusion of TESLA into the S & P 500 index. Subsequently, the fall accelerated to 12%.
The price of bitcoin on Tuesday continued to fall below the level of $ 50,000 after the US Finance Minister Janet Yellen made a number of comments about cryptocurrency. She called Bitcoin "Extreme ineffective tool for conducting operations" and warned its use in illegal activities.
According to Coin Metrics, on this background, the digital currency fell by 16% over the past 24 hours.
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