Not everyone is impressed by the electric vehicle maker’s new investment strategy.
Tesla’s dramatic Bitcoin buy-in might have lit a fire under the crypto markets, but not everyone is impressed by the electric vehicle maker’s new investment strategy.
A former Goldman Sachs executive who has been in a long position on TSLA since 2019 announced on Twitter that he’s taken his money off the table. On Twitter, Gary Black wrote:
“The absence of clear FY’21 delivery guidance, increased odds of a 1Q miss, and a more risky capital allocation policy/higher earnings variability were the primary factors.”
Black argued that Tesla was already high risk before it decided to gain a substantial amount of exposure to Bitcoin — and suggested this new strategy had tipped him over the edge.
“There are few speculative assets more to the climate than Bitcoin, which consumes a colossal amount of electricity.”
Others fear that Tesla’s share price could end up tumbling if BTC suffers a crash.
The company’s crypto announcement was made before trading began on the New York Stock Exchange on Monday, and TSLA’s stock was largely flat, closing down 0.6%.