Tesla Shares On The Lower Side, Critics Suggest It To Get Rid of Some Bitcoins

Tesla is facing a decline in the value of its shares since it announced having invested in Bitcoin for approximately US$ 1.5 Billion. The decline caused the value of shares to go low at 30%. Now the critics are of the view that in order to prevent any further harm to its assets, Tesla should immediately get rid of some of its Bitcoin holding. Similarly, circumstances are also being witnessed by Microstrategy as well.

It was in February 2021 when Elon Musk stated that he was privileged to inform that his company invested in Bitcoin. He informed at that time that Bitcoins worth US$ 1.5 Billion have been acquired by Tesla. But it seems that the investment turned out to be a bad omen for Tesla.

Since the day of Tesla’s announcement, the value of shares of Telsa is declining and it is declining at a rapid pace. As of today, it has been determined by Tesla that the shares lost considerable value upto 30%. This is a huge setback for the company as the investment was made as a hedge against unorthodox oddities.

It has been questioned within social media by experts and analysts as to what is causing a decline in the value of shares. Similar oddities have also been complained of by one of the heaviest 2020 Bitcoin investors, Microstrategy. As per data, Microstrategy too has been witnessing the decreased value of its shares.

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Experts and analysts are of the view that Tesla should immediately get rid of some of its Bitcoins. According to them, disposing off Bitcoins will bring instability in the value of Tesla’s shares. They have also suggested the same method to be adopted by Microstrategy if it requires to save deteriorating shares’ value.

Prior to Bitcoin’s investment, Tesla’s shares were being traded on for US$ 863 p/share. However, since then the value has deteriorated immensely and as of today has reached a point where it is lower than 30%.

A similar response was also witnessed at Twitter wherein many Twitter Users also gave the same advice to Elon Musk. One of the Twitter advisers was Gary Black, who had once served as CEO at Aegon Asset Management. He was of the view that Musk would be doing a favor for Tesla’s shareholders if he would get rid of a few Bitcoins from the company’s balance sheet. He stated further that this will not only bring re-energize the momentum lost by Tesla but will also boost the value of its shares.

But so far Tesla hasn’t decided whether it would be considering the advice passed on to it. It had either not shown any willingness to sell some portion of its Bitcoin holding. In fact, neither any response nor any statement has been issued by Tesla on the question.

Author: Jerry Dedmon

Jerry Dedmon is a new writer on Cryptocoin Stock Exchange, his articles are cryptocurrency news, analysis and blockchain news based. We recommend tuning in for Jerry's daily posts as they are always a great and interesting read.

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