According to analysts, Elon Musk’s electric car company Tesla has directly tied its share price to the value of Bitcoin following the company’s major investment in the cryptocurrency. One analyst told CNBC: “Musk runs the risk that this side show can overshadow the fundamental EV (electric vehicle) vision in the near term for investors.”
CNBC reports that according to Wedbush analyst Daniel Ives, Elon Musk’s electric car maker Tesla has directly linked its share price to the value of Bitcoin following the company’s recent $1.5 billion investment into the cryptocurrency.
Ives told CNBC via email: “Musk is now tied to the bitcoin story in the eyes of the Street and although Tesla made a billion paper profit in its first month owning the digital gold, it comes with added risk, as seen this week.”
Ives added: “With Tesla diving into the deep end of the pool on bitcoin, Musk runs the risk