Tesla's share price has taken quite a dramatic tumble in recent days.
Ever since Tesla bought Bitcoin just under a month ago, heated debates about crypto being a viable investment have kicked off.
The debate has stoked the fire that institutional investors have no place putting their assets into cryptocurrencies — an avenue that was always deemed as a risky investment. While Gary Black has stated that it was unlikely Tesla would make such a move, he went on to share his views on Twitter by saying:
“If you asked 100 institutional [Tesla] shareholders would they prefer [Tesla] to invest $1.5B excess cash in [btc], or $1.5B excess cash in Tesla stock, 95/100 would choose [Tesla] stock.”
The comments come at a trying time for Tesla, with shares in the electric vehicle maker falling to intraday lows of $557 on Friday… down 10%.
What’s Happening With Bitcoin?
Bitcoin has also yet to recover fully from last week's losses, closing yesterday at $48,561.17 and currently trading at $47,517.85, which is down 3.6% in the last 24 hours.
Some analysts have said that the Bitcoin price could be affected by the traditional stocks and bonds market, which also took a hit yesterday.
“TSLA took a large chunk of the cash (i.e., $1.5bn, or ~12.2% of the ~$12bn in equity raised in three offerings in 2020) generated from three secondary equity offerings in 2020, and invested it in a highly volatile and allegedly manipulated cryptocurrency.”