Tesla CEO Elon Musk has lost his crown as the world’s richest man following a sharp improvement in Bitcoin and a fall in his company’s stock, which some analysts believe is a correlation.
Tesla stock (TSLA) fell 21% from its low of 890% on January 26, down from the previous two days ’lows to 8,698. Shares of the electric vehicle maker fell 13% on Tuesday, February 23, the worst day since early September.
Fox Business has blamed this week’s stock drop on the company’s association with Bitcoin, citing Weedbush analyst Dan Ives, who also noted that he believes the move was strategic in the long run.
“Investors are starting to build Bitcoin and Tesla on the hip. While on paper Tesla made about 1 1 billion a month on Bitcoin, surpassing all its EV profits since 2020, sold in Bitcoin in the last 48 hours and added volatility has forced some investors to exit the name in the near term , ”
The Tesla stock traded around 65 865 on February 8 when the ad bought ઈ 1.5b in Bitcoin. According to Yahoo Finance, it reached 681 dollars on February 23. However, reports of quality control issues in China could also affect prices.
Tesla owns an estimated 48,000 BTC, which means the paper had a ક્ષેત્ર 1 billion paper profit by the time the asset reached its all-time high of 58,000 on February 21st.
Despite a dip in prices this week, the firm is still profitable on Bitcoin Buy, as the asset price was over 39 39,000 at the time the purchase was announced (and the purchase was made earlier).
The Telsa stock drop has pushed Musk to the top of Bloomberg’s Billionaire Index, with recent losses at $ 3.56 billion. Jeff Bezos tops the list again with a net worth of 7 7,187 billion, while Musk has 180 180 billion, according to Bloomberg.
At the time of writing, Bitcoin had improved by 17% to nearly ,000 48,000, marking a 10 10 slide in just three days. In terms of pullbacks, the markets are used on a large scale, such as in mid-January, which resulted in a 30% correction for BTC.