Former Goldman Sachs executive Gary Black believes Tesla should use its surplus cash to buy its own stock, not digital assets.
The former investment director of Goldman Sachs said this when analyzing that he could stop the decline in shares of the electric car manufacturer Tesla, writes ForkLog.
Former investment director of Goldman Sachs, Gary Black, closed a long position in Tesla after the electric car maker invested in Bitcoin.
According to analysts from Wedbush Securities, Tesla’s unrealized profit from its $ 1.5 billion investment in the first cryptocurrency was higher than from the sale of electric vehicles in 2020. The company also announced the dependence of the Tesla share price on the bitcoin rate.
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“Imagine the positive momentum Tesla would create if it announced the sale of bitcoins and approved the share buyback. It is highly unlikely, but shareholders would support, ”Black said.
On February 8, Tesla announced that it had invested $ 1.5 billion in the first cryptocurrency. In less than a month, the electric car maker’s shares fell 28%.