Before investing in cryptocurrency, Tesla’s capitalization was $ 815 billion.At the time of the opening of exchange trading on Tuesday, February 23, the company’s market value dropped to $ 620 billion.This is below the capitalization level when Tesla entered the S&P 500 stock index at the end of December 2020.
According to the American publication, Tesla’s investment in bitcoin “pegged” the price of the company’s shares to the price of the cryptocurrency. Accordingly, when Bitcoin’s price has plummeted in the past few days – from a record $ 58,000 to $ 45,300 – it negatively affected Tesla’s stock price.
Also, the fall in the price of cryptocurrency and Tesla shares since the beginning of this week was provoked by the head of the company, Elon Musk . Last Saturday, he tweeted that “Bitcoin is overpriced.”
At the beginning of stock trading on Tuesday, Tesla’s share price dropped to $ 619, but in the next few hours returned to growth (to $ 703), raising the company’s capitalization to $ 673 billion.