{"id":187004,"date":"2021-02-23T21:03:00","date_gmt":"2021-02-23T18:03:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/tesla-stocks-drop-likely-related-to-bitcoin-bet\/"},"modified":"2021-02-23T21:03:00","modified_gmt":"2021-02-23T18:03:00","slug":"tesla-stocks-drop-likely-related-to-bitcoin-bet","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/tesla-stocks-drop-likely-related-to-bitcoin-bet\/","title":{"rendered":"#\n  Tesla stock\u2019s drop likely related to bitcoin bet"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3c06ac09c73\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3c06ac09c73\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/tesla-stocks-drop-likely-related-to-bitcoin-bet\/#Investors_worry_about_%E2%80%98bitcoin_sideshow\" >Investors worry about \u2018bitcoin sideshow\u2019<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/tesla-stocks-drop-likely-related-to-bitcoin-bet\/#Claudia_Assis\" >Claudia Assis<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Tesla stock\u2019s drop likely related to bitcoin bet<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Investors_worry_about_%E2%80%98bitcoin_sideshow\"><\/span>\n  Investors worry about \u2018bitcoin sideshow\u2019<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000175631\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Tesla Inc. stock entered a bear market on Tuesday and a few analysts pinned that on the Silicon Valley electric-car maker\u2019s recent bet on bitcoin.<\/p>\n<p> Tesla<br \/>\n        TSLA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203558040\/composite\" class=\"negative\">-5.22%<\/bg-quote><br \/>\n       shares are around 22% off their record close. A bear market is commonly defined as a decline of 20% or more from a peak. For Tesla, a close below $706.47, which is 20% off its Jan. 26 record close, would meet that criterion. <\/p>\n<div class=\"paywall\">\n       <strong>See also:<\/strong> Why did Tesla buy bitcoin?<\/p>\n<p>Tesla was last in a bear market in September, around the time of its stock split, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> that a major shareholder had sold some of its stake, and a stock offering.  <\/p>\n<p>\u201cThis pullback really started after Tesla made the decision to buy $1.5 billion of bitcoin,\u201d Garrett Nelson with CFRA told MarketWatch. \u201cAlthough Tesla used a relatively small percentage of their overall cash to make the purchase, it has investors questioning its future growth strategy.\u201d<\/p>\n<p>The selloff gained momentum on Tuesday following late Monday news that Lucid Motors plans to go public after a merger with a blank-check company, he said. The deal\u2019s implied valuation of around $24 billion \u201cis being viewed as highly dis<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointing\u201d and as reflecting negatively on Tesla and other EV upstarts, Nelson said.<\/p>\n<p>American depositary receipts of China-based Nio Inc.<br \/>\n        NIO,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204905836\/composite\" class=\"negative\">-8.41%<\/bg-quote><span>,<\/span><br \/>\n       XPeng<br \/>\n        XPEV,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/219982686\/composite\" class=\"negative\">-5.16%<\/bg-quote><br \/>\n       and Li Auto Inc.<br \/>\n        LI,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/219811686\/composite\" class=\"negative\">-8.51%<\/bg-quote><br \/>\n       as well as shares of Nikola Corp.<br \/>\n        NKLA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208704275\/composite\" class=\"negative\">-7.41%<\/bg-quote><br \/>\n       significantly underperformed the broader market on Tuesday. <\/p>\n<p>In a note Tuesday, analyst Dan Ives with Wedbush agreed with the bitcoin connection and the last few days of \u201cnasty\u201d declines for the shares, and added another reason of his own. <\/p>\n<p>Tesla dove \u201cinto the deep end of the pool\u201d with its bitcoin bet and the company\u2019s \u201cstock is now heavily tied to this digital currency,\u201d Ives said. In theory, the investment is relatively small and would not \u201cmove the needle for Tesla,\u201d he said.<\/p>\n<p>\u201cHowever, perception is reality on the Street and by Musk and Tesla aggressively<br \/>embracing bitcoin (from a transactional perspective as well), investors are starting<br \/>to tie bitcoin and Tesla at the hip,\u201d Ives said. <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>\u201cWhile Tesla on paper made roughly a $1 billion on bitcoin in a month that exceeded all its EV profits from 2020, the recent 48-hour sell off in bitcoin and added volatility has driven some investors to the exits,\u201d he said. The lingering worry is that the \u201cbitcoin sideshow\u201d overshadows Tesla\u2019s overall EV growth story.<\/p>\n<p>Tesla stopping sales of its lowest price Model Y coupled with continued price cuts have led to Street demand concerns as the bears come out of hibernation mode, said Ives.<\/p>\n<p>Tesla\u2019s quarterly sales figures are likely to drive the stock upward and resolve some of those concerns, he said. <\/p>\n<p>In the meantime, it\u2019s \u201c\u2018buckle up the seat belt time\u2019 again for Tesla\u2019s stock with<br \/>more volatility on the horizon,\u201d Ives said.<\/p>\n<p>Tesla shares have added 279% in the past 12 months, compared with gains of around 15% for the S&amp;P 500 index.<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"negative\">-0.86%<\/bg-quote><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Claudia Assis\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Claudia_Assis\"><\/span>Claudia Assis<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D2AE0FC24AA4%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Tesla stock\u2019s drop likely related to bitcoin bet &#8221; Investors worry about \u2018bitcoin sideshow\u2019 Tesla Inc. stock entered a bear market on Tuesday and a few analysts pinned that on the Silicon Valley electric-car maker\u2019s recent bet on bitcoin. Tesla TSLA, -5.22% shares are around 22% off their record close. A bear market is&#8230;<\/p>\n","protected":false},"author":1,"featured_media":187005,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-187004","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/187004","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=187004"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/187004\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/187005"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=187004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=187004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=187004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}