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What happened to Tesla and Bitcoin’s prices?

Don’t worry, you’re not the only one that’s getting tired of reading (and writing) about Elon Musk, Tesla (NASDAQ: TSLA), and Bitcoin…

This article was originally written by MyWallSt. Read more market-beating insights from the MyWallSt team here.

But I guess we can’t just ignore the gaping, crypto-shaped red hole in the market today? 

 

Can Tesla escape Bitcoin? 

Exactly a week ago we were discussing how Tesla’s decision to stop accepting Bitcoin tanked the crypto market. Well, the largest cryptocurrency on earth, Bitcoin, appears to be hitting back, seemingly dragging Tesla down with it yesterday due to the pair’s affiliation. 

Of course, many other companies are affiliated with Bitcoin: Square, PayPal, Nvidia, just to name a few…

But all anyone wants to talk about is how “Elon Musk’s obsession with cryptocurrency is dragging Tesla down”, or “Tesla should focus on electric cars” etc. It can be pretty irritating, as long-term Tesla investors, to be subject to such volatility when it has almost nothing to do with the company’s fundamentals.

And perhaps there is an argument to be made about how Elon Musk tends to stoke the fire a bit with his tweets and actions, but it would be naive to think that Bitcoin will either make or break Tesla. 

At least I hope it won’t…

While it’s easy to be distracted by the current crypto-mania that has gripped the media and investors alike, don’t get too worried about short-term volatility when days like yesterday happen. 

At the end of the day, Tesla is a car manufacturer tha happens to hold some Bitcoin on its balance sheet.

This doesn’t diminish its massive potential in driver data and automated driving. That’s why, despite rising competition in Europe, China, and in the U.S., its brand remains at the forefront of the booming industry.

If you are long for those reasons, then Bitcoin shouldn’t change that.

 

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Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

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